USD/JPY Forecast May 17, 2012, Technical Analysis

The USD/JPY pair rose during most of the session on Wednesday as the pair continues to find support in the 80 “area”. However, the daily candle looks like a shooting star, and as a result it looks like the pair isn’t quite ready to take off yet. In fact, it suggests that the market is about to pull back into the consolidation between 0.7950 and 0.8050 or so. This simply has us thinking of buying pullbacks, but not selling – the Bank of Japan is sitting below and won’t hesitate to get involved if the pair falls too quickly. A break of the top of the session highs would show a breakthrough of the resistance, and would have us long as well.

Written by FX Empire