USD/JPY Forecast January 6th, 2012, Technical Analysis

USD/JPY rose during the Thursday session as the worries over Europe brought out a bid for the Dollar on the whole. The market was oversold, so the bounce was somewhat expected. The pair looks like the support offered by the Bank of Japan could force it into a new range between 76.50 and 78.25 or so. With this in mind, we aren’t overly excited about the pair, but could see the argument for buying at this level to make 50 – 100 pips. Selling isn’t advised at this point as there is simply far too much support underneath, and the Bank of Japan is certainly still watching this pair.

USD/JPY Forecast January 6th, 2012, Technical Analysis

Written by FX Empire