We are looking for a short opprotunity here. If we look at the H4 charts we can see that we have a nice long Bearish divergence on the MACD indicator. The RSI indicator is almost touching extreme levels. We also have stiff resistance at the psychological level 78. So what are we looking for? How can we join? Well I would like to see price reach this psychological level around 78 to complete the next divergence. I want to see price make a stop, what do I mean by stop? Create some kind of Bearish candle stick pattern and that will be the sign to sell. Target 1 will be the 20MA of the Bollinger bands and Target 2 will be the opposite boundary of the Bollinger bands.

USDJPY

USDJPY trade setup for 2012.02.13

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

 Name  S3  S2  S1  Pivot  R1  R2  R3

 Classic
77.2553
77.4002
77.5003
77.6452
77.7453
77.8902
77.9903

 Fibonacci
77.4002
77.4938
77.5516
77.6452
77.7388
77.7966
77.8902

 Camarilla
77.5331
77.5556
77.5780
77.6452
77.6230
77.6454
77.6679

 Woodie's
-
77.3890
77.4780
77.6340
77.7230
77.8790
-

 DeMark's
-
-
77.8178
77.6814
77.5727
-
-