USD/JPY candlestick analysis for January 12, 2011

The USD/JPY pair is consolidating after it has successfully broken the resistance level 82.85. However, the viewpoint at the pair is still bullish and the upside movement is expected to resume in the nearest future.
Earlier on a 4-hour graph the USD/JPY pair has formed Hammer candlestick, indicating upside movement. This candlestick shows that the currency pair was decreasing for several days, but rebounded near 80.93.

This viewpoint is supported by the fact the pair has successfully broken the 23.6 Fibonacci correction level. Breakout of the resistance level 82.85 has targeted the pair to 84.50.
However, if support level 80.93 is broken, long positions should be closed as a break of this level will cause the pair to decrease to 80.20.

More analysis on