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 Forecast January 20, 2012, Technical Analysis
USD/JPY Pivot Points (Time Frame: 1 Day)
Name S1 S2 S3 Pivot R1 R2 R3