USD/JPY fell again on Tuesday as traders continue to test the patience of the Bank of Japan. The finance minister did have a few words about the rate of the Yen last night, but as of yet there haven't been any major signs of intervention coming. However, there is little doubt that the Japanese are willing to do it, and will more than likely do it in the relative near future. The 75.50 mark was where they did last time, and it is a good bet they will be watching that area going forward.
They often like to release a few statements before actually getting involved, so while they are certainly paying attention - there is a good chance they won't get into the markets for a few days or even weeks, depending on how fast the descent of this pair is. In the mean time, we are waiting for more chatter from the BoJ in order to place a position on the long side. Selling isn't even possible at this point.
USD/JPY Forecast February 1, 2012. Technical Analysis
USD/JPY Pivot Points (Time Frame: 1 Day)
Name S3 S2 S1 Pivot R1 R2 R3