By FX Empire.com
USD/JPY shot straight up during the week as the Bank of Japan announced that it was going to expand its bond buying program as a measure to flood the market with liquidity. The weakening of the Yen was sharp for the week, but the 80 level looms large ahead, and it is there that we think the next longer-term trade will be decided by the reaction to that level. We will not be trading this pair until the end of the week as the close will have a massive signal as to where we go next. If the market is above the 80 mark at the end of the week, we think this will become a long term buy and hold. If we close below the 80 level, or even with a hammer – we would short.
USD/JPY Forecast for the Week of February 20, 2012, Technical Analysis
Originally posted here
