USD/JPY Forecast May 20, 2014, Technical Analysis

The USD/JPY pair broke down below the 11.25 level, an area that has offered a significant amount of support during the session on Monday. However, we bounced high enough to form a hammer, his hammer of course is very bullish looking. On a break above the top of the hammer, we think the market would more than likely head to the 102.25 handle first, and then possibly even the 103 level. On the other hand, if we broke down below the bottom of the candle from the Monday session, we could find yourselves heading towards the 101 handle, followed very shortly by the 100 handle.