The massive amount of buying pressure that we had seen has gotten overdone, and therefore a pullback would be expected. Because of this, I do believe that we have further to go to the downside, perhaps a move down to the ¥120 level.Having said that, it is not necessarily mean that I am willing to short this market, rather I am waiting to see whether or not we get any type of support underneath after a pullback.
A breakdown below the bottom of the candlestick for the trading session on Wednesday will open up a move down to the ¥120 level, possibly even as low as the ¥118 level. With that in mind, you should understand that breaking above that level would be a major breakout and could send this market much higher over the longer term.The market continues to be very noisy, so you need to be cautious with your position size, but I do not like the idea of buying it all the way appear.