USD/JPY fell for the session on Wednesday as the Dollar got sold off in general. The pair currently is sitting on top of a nice support area at 76.50 level and the market simply hasn't moved much over the last couple of weeks.

The Bank of Japan is always a threat to intervene, and as a result selling isn't going to be an option at this level. The market could be bought if we see a break higher as there is an automatic backstop because of the BoJ. The 78.25 level seems to be the top of the range, so we would only get involved in this pair for a short term trade as the market is so tightly wound at this point.

USD/JPY

USD/JPY Forecast January 19, 2012, Technical Analysis

USD/JPY Pivot Points (Time Frame: 1 Day)

 Name  S1  S2  S3  Pivot  R1  R2  R3

 Classic
76.6663
76.5707
76.4633
76.7737
76.8693
76.9767
77.0723

 Fibonacci
76.6961
76.6482
76.5707
76.7737
76.8512
76.8991
76.9767

 Camarilla
76.7434
76.7248
76.7062
76.7737
76.7806
76.7992
76.8178

 Woodie's
76.6605
76.5678
-
76.7708
76.8635
76.9737
-

 DeMark's
76.9230
-
-
-
76.7200
-
-