The USD/JPY pair fell during the session on Monday as the market took a little bit of a break from the massive surge upward. The pair fell back down to the 80 area, and then bounced. The 80 level is very important to the pair in order to continue to see the upward momentum take over. The breakout above that level was massive, and we think that the 80 - 85 level is the new consolidation area.
The pullback was healthy as the move had gotten parabolic. The recent surge was so quick that we simply couldn't maintain this move without a correction. The market looks very positive at this point, and we think the market is a buy on the dips market, and this should continue to be the way until we close on a daily chart below the 80 level.
USD/JPY Forecast February 28, 2012, Technical Analysis
USD/JPY Pivot Points (Time Frame: 1 Day)
Name S3 S2 S1 Pivot R1 R2 R3