The US dollar initially rallied during the training session on Thursday as we tried to rally a bit. Having said that, the market has pulled back significantly to break down below the ¥138 level. The ¥138 level had caused a bit of support as late, and therefore you should pay close attention market in this general vicinity. Even if we do break down from here, I think it’s only a matter of time before the buyers jump in, as we have seen this area offer interest previously.

Even if we break down below the ¥137 level, then it’s likely that we could drop to the ¥136 level. The ¥136 level is an area that is also supported, as it has been very noisy. The area is quite impressive due to the noisy trading that we had seen over the course of several weeks. Because of this, I think it’s probably only a matter of time before the buyers jump in and try to push to the USD/JPY currency pair upside.