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

USD/JPY Forecast January 27, 2012, Technical Analysis

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

 Name  S3  S2  S1  Pivot  R1  R2  R3

 Classic
75.9793
76.4402
76.7623
77.2232
77.5453
78.0062
78.3283

 Fibonacci
76.4402
76.7393
76.9241
77.2232
77.5223
77.7071
78.0062

 Camarilla
76.8692
76.9410
77.0127
77.2232
77.1563
77.2280
77.2998

 Woodie's
-
76.4055
76.6930
77.1885
77.4760
77.9715
-

 DeMark's
-
-
77.3842
77.1426
76.6012
-
-