USD/JPY fell during the session on Tuesday as the risk off trade came back due to Greek fears, and the news that several economies are reporting a slowdown in such places as Europe, China, and Brazil. With all of this in mind, there are a lot of traders that wish to own Yen. However, this pair is being moved against by the Bank of Japan, and a break of the 80 resistance level was a monumental move. With this in mind, we think this is simply the pause before a move higher. In fact, the 4 hour chart shows a hammer at the moment, and this shows just how resilient this pair really is. We are buying on dips going forward, and building a position for the long-term in the market.
USD/JPY Forecast March 7, 2012, Technical Analysis
USD/JPY Pivot Points (Time Frame: 1 Day)
Name S3 S2 S1 Pivot R1 R2 R3