The USD/JPY pair rose during the Tuesday session to break the top of the hammer that the pair formed on Monday. The signal was bullish, and as a result more traders came into the market. The range wasn't that large, but the fact that it was positive after such a strong move higher overall is pretty impressive. The trend in this pair is changing, and as a result we only want to be long. (In fact - we are, and are also looking to add.)

On a break of the 85 level above, we would see the 50% Fibonacci level giving way from the last major move down, and this would have us adding more to our positions. The selling of this pair isn't a thought at this point, and until we get below the 80 handle - we will buy dips.

USD/JPY

USD/JPY Forecast March 21, 2012, Technical Analysis

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

 Name  S3  S2  S1  Pivot  R1  R2  R3

 Classic
82.8843
83.1077
83.3953
83.6187
83.9063
84.1297
84.4173

 Fibonacci
83.1077
83.3029
83.4235
83.6187
83.8139
83.9345
84.1297

 Camarilla
83.5425
83.5893
83.6362
83.6187
83.7298
83.7767
83.8235

 Woodie's
-
83.1238
83.4275
83.6347
83.9385
84.1458
-

 DeMark's
-
-
84.0180
83.6745
83.5070
-
-