USD/JPY rose during the session as the risk appetite in the markets overall improved. The level that the pair rose from is massive support, and the pair reacted as we had anticipated. The real question is going to be whether or not it can continue to gain going forward. The pressure to the downside is significant, and as a result we are somewhat cautious going long unless it is closer to 76.50 where we feel the Bank of Japan starts to pay attention. In this pattern though, we are willing to buy pullbacks on a shorter-term charts. We will not sell at this point in time.

USD/JPY

USD/JPY Forecast January 20, 2012, Technical Analysis

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

 Name  S1  S2  S3  Pivot  R1  R2  R3

 Classic
76.8683
76.4662
76.2373
77.0972
77.4993
77.7282
78.1303

 Fibonacci
76.8561
76.7072
76.4662
77.0972
77.3382
77.4871
77.7282

 Camarilla
77.2127
77.1548
77.0970
77.0972
77.3283
77.3862
77.4440

 Woodie's
76.9550
76.5095
-
77.1405
77.5860
77.7715
-

 DeMark's
77.6137
-
-
-
76.9827
-
-