USD/JPY fell again on Wednesday as traders continue to press their luck against the Bank of Japan and its desire to keep this cross rate higher. The resulting bounce in the late hours of the session saw a hammer form, and this area that the pair currently sits in is the start of serious support - not the least of which includes a massive intervention candle.
Because of this, we simply cannot sell at this point in time. However, a small position can be initiated in the desire to catch intervention attempts. A break of the high from the Wednesday session could be your trigger. However, it should be said that patience will more than likely be needed as the BoJ will move on its own time.
USD/JPY Forecast February 2, 2012, Technical Analysis
USD/JPY Pivot Points (Time Frame: 1 Day)
Name S3 S2 S1 Pivot R1 R2 R3