USD/JPY had a back and forth day on Thursday as traders tested the lows again, but backed off as fear of intervention certainly must come into play every time we get close to the lows. The 77 level has become a bit of a battleground for bears and bulls in order to determine the future direction of this pair. The trend is down, but with the Bank of Japan willing to jump into the market in order to buy this pair – we are not comfortable selling at these low prices. The buy side doesn’t look all that rosy either. Quite frankly – we are avoiding this pair at this time, but would consider a small position on the buy side if we can break above 77.50 or so.