USD/JPY Forecast December 5, 2012, Technical Analysis

The USD/JPY pair fell during the session on Tuesday as the “risk off” trade gained the upper hand slightly against the risk appetite driven traders out there. However, we still see the 81.50 level has offered support, and we certainly don’t want to short this market. On pullbacks, we think this market is a buy, and as such have initiated another small long position.

It isn’t until we clear the 79.50 level that we think the trend upwards would be broken. The 84 handle above offers quite a bit of resistance, but if we get past that – look out! This could be the beginning of a long-term buy-and-hold type of situation.

 

Written by FX Empire