The recent correction in USD/JPY has found some buying support at the psychologically significant 102.00 handle, which is just shy of the 38.2% Fib Retracement level. Another Hammer candle formation on the four hour chart may be hinting at some further upside potential for the pair. From a purely technical perspective longs are preferred with a target of the recent high of 102.630, and a stop below nearby support at 102.00. This would offer a reward of 38 pips with a risk of 26 pips.
However, when taking a look at the economic calendar, fundamental event risk is posed by upcoming testimony from recently-inducted Fed Chair