USD/JPY shot straight up during the Tuesday session as traders took on a bit more risk in the Yen related markets. The pair is still in a massive downtrend, and the area it slammed into for the session is still massive resistance. The pair cannot be bought at this point as surely there will be sellers willing to come into the market at this point, and the trend is against you. The 78.25 level has been very resistive lately, and nothing in this chart suggests that it is about to give way. Because of this, we are willing to fade this rally unless the daily chart can somehow close above the 80 mark, which would mark a significant and long-term change.
USD/JPY Forecast January 25, 2012, Technical Analysis
USD/JPY Pivot Points (Time Frame: 1 Day)
Name S3 S2 S1 Pivot R1 R2 R3