USD/JPY. For the pair US Dollar against Japanese Yen, I was expecting another downward impulse from the resistance around 159.80-160 during the past trading week. However, we passed through this area without any noticeable reaction at all, leading to a continuation of the rise towards 160.80. Here is where it gets interesting, as it could be assumed that we are consolidating above 160 and thus breaking out of the sideways range of 158-160. However, assumptions are one thing, and the market disposition is another. Few would have expected such a sharp drop from the pair, losing 5 figures in just 5 hours, which is quite rare. After such drops, there are many questions left unanswered, and some answers may come in the following week when things settle down a bit. Overall, I expect a recovery of the US Dollar towards the 158 area.
