Here is my Bearish opportunity for the USDJPY pair. If we look to the Daily charts we can see that we are in a extreme situation. We have extreme Bollinger band duplication which brings us to the stiff resistance from the weekly charts around the 80.60. Friday closed with a Bullish Marabuzu candle and the beginning of this week as of now looks to be forming a hammer candle pattern formation. The RSI indicator is creating a double top, the Stochastic indicator is also very extreme. All of these signs are pointing to a Bearish signal. We will be looking to profit from the cycle here which could bring us to 80 maybe even 79.50. I suggest to attack now and place another order around 82.
USDJPY trade setup for February 27, 2012
USD/JPY Pivot Points (Time Frame: 1 Day)
Name S3 S2 S1 Pivot R1 R2 R3