USD/JPY continues to lull traders to sleep as it goes sideways in a roughly 70 pip range over the last several sessions. Monday saw more of the same, and formed a doji. While there really isn't much to do in this pair at the moment, it is worth watching as there are some definitive areas to watch. The 76.50 level should continue to be support, and if it gives way, there is a chance that you will see the Bank of Japan get involved in the currency markets again. The 78.25 should be thought of as the absolute top in the recent ranges, and the 80 level is the absolute top in this market currently. The 80 will be hard to break free of, but if the market does - it will be a long term buy and hold pair. If the 78.25 level shows weakness we could fade the rally and expect to see a return to the current areas.
USD/JPY Forecast January 24, 2012, Technical Analysis
USD/JPY Pivot Points (Time Frame: 1 Day)
Name S3 S2 S1 Pivot R1 R2 R3