USD/JPY Technical Analysis for the Week of October 24, 2011

The USD/JPY pair spiked lower on Friday and even broke through the 76 level as the Dollar really got punished towards the end of the session. The move was a bit of a surprise, and should catch the attention of the Bank of Japan as well. The BoJ has shown it is working against this kind of move, and one has to wonder how much they will allow the Yen to appreciate. Because of this, we can’t sell this move, and as long as the 76 level holds up – and at the time of writing it is, we would use this as an opportunity to buy. However, this is a short-term trade, and not a long-term one.