USD/JPY gapped at the open on Monday, only to turn around and fill the gap as technicians will have undoubtedly tried to fill the gap. The pair looks set to try and break through the 80 level, but there is a massive barrier at the level, and we are looking for a possible weak daily candle form which to sell. The breaking of this barrier won't be confirmed until we can get a close well over it. We are willing to go long on a buy and hold basis if the pair closes above 0.81, and at that point in time we think the trend will have changed significantly. However, the selling of this pair will more than likely be a cleaner trade if we get the signal of weakness at 80 or so.
USD/JPY Forecast February 21, 2012, Technical Analysis
USD/JPY Pivot Points (Time Frame: 1 Day)
Name S3 S2 S1 Pivot R1 R2 R3