The USDJPY pair fell during the bulk of the session on Thursday, testing the 101.50 support level.

This support level also coincides with an uptrend line from longer-term charts, and as a result we think that this area could be very decisive for where the market goes next.

With that, we are willing to buy a supportive candle on the short-term charts.

This is a relatively low risk to reward ratio type of trade, because we feel that any significant move lower will make itself obvious.

On the other hand, we could go as high as 103 in the short term on the bounce.

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, minus ETF fee. The fund seeks to reflect the price of the Japanese yen with the shares representing a cost-effective investment relative to investing in the FOREX market.

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