USD/JPY rose again on Thursday as the US jobless claims number came out at the lowest level in 4 years. The pair is massively beat down over the last few years, but the truth is that the 80 level looms large above this recent surge. The move has been parabolic, but the reality is that 80 will be the real test for this pair going forward. Because of this, we are willing to step back and wait to see what happens when the market reaches the level.
A daily close above it would have us going into buy and hold mode, but to be honest - this is probably not going to be very likely at this point in time. The move simply has been too strong and rapid to break through the massive area on the first attempt it seems, and the risk off appeal of shorting this pair should continue. With this in mind, we are waiting for 80.
USD/JPY Forecast February 17, 2012, Technical Analysis
USD/JPY Pivot Points (Time Frame: 1 Day)
Name S3 S2 S1 Pivot R1 R2 R3