The fall from 79.70 to 76.25 took less than 30 minutes. The recovery is a little slower, but not by much, with the rally from 76.25 to 78.75 taking a whole 90 minutes.
There are a few differing opinions in the market now. One option trader that I just spoke with feels that this fall was the last pressure release and that USD/JPY will go higher from here. I tend to think that the market is still short JPY, especially on crosses like AUD/JPY, and we will see some more exhaustive sell-offs before the big relief rally can begin.
Initial strong resistance at the 79.75 breakdown level.
