The USD/JPY pair initially fell during the week as the market went back down to retest the 80 level. Now that the level has held as support, this could be the start of a much larger move. The weekly candle shape is that of a hammer, and it is sitting just above the 80 line. This is an area that offered tremendous resistance previously, and now looks as if it is going to offer significant support again. With this in mind, we think that the previous consolidation range of 80 - 85 will be the new rectangle we trade in for the moment. However, with this surge - we think that eventually 85 will give way. We are buying on a break of the highs from the week, and cannot sell until we are well below the 80 level.
USD/JPY Forecast for the Week of March 5, 2012, Technical Analysis
USD/JPY Pivot Points (Time Frame: 1 Day)
Name S3 S2 S1 Pivot R1 R2 R3