The USDJPY pair initially tried to rally during the session on Thursday, but as you can see fell back down as we continue to bang around the 102 level. This area has been supportive in the past, but quite frankly the real support is down at the 101 level, so if we do fall from here, we would expect to see the market start buying back there.

Ultimately, we feel that the market is consolidating between the 101 and 103 levels, meaning that we are in the center of consolidation, which of course is not where you want to be if you’re going to place a trade.

Editor’s Note: Equity investors/traders can use the Currency Shares Japanese Yen Trust (FXY, quote) ETF to take positions in the yen without a FOREX account.  The ETF looks to track the price of the Japanese Yen (USDJPY), minus ETF fee. The fund seeks to reflect the price of the Japanese yen (USDJPY) with the shares representing a cost-effective investment relative to investing in the FOREX market.

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