USD/JPY fell during the Thursday session as the shooting star we pointed out from Wednesday got triggered to the downside. The pair is decidedly bearish overall, and the recent consolidation area had absolutely no reason to break apart.
The pair looks as if it is going to continue lower towards the 76.50 level that the Bank of Japan has been buying at. (Shhhh! Don't tell anyone: It's a secret!) The market obviously has a benefactor at that level, so it is hard to try and press it lower at the moment. We are selling rallies on shorter time frames in order to take advantage of the current market conditions. We are not buying at this point in time, and will only be aiming for 50 pip gains on sales anyway as the range is so strong.
USD/JPY Forecast January 27, 2012, Technical Analysis
USD/JPY Pivot Points (Time Frame: 1 Day)
Name S3 S2 S1 Pivot R1 R2 R3