USD/JPY Forecast December 23, 2011, Technical Analysis

USD/JPY rose on Thursday in the illiquid volume. The pair is struggling to clear the 78 handle completely, something that has been the case for quite some time. If we can get a close above the 78.50 level, there is a real possibility that we try to make a run to the 80 mark, an area that has been massive in its implications for the pair.

Until that mark is overtaken, we are not looking to buy this pair. In fact, a breakout has us waiting until we get to 80 to try and short this market. If that area gives way, fine. We simply will reverse and hold the long position for months as that level truly is that important. In the meantime, we wait.

USD/JPY Forecast December 23, 2011, Technical Analysis

Written by FX Empire