FX.co ★ Candlestick analysis of USD/JPY for 16/08/2010

On a daily chart of USD/JPY, “Hammer” candlestick has developed earlier. This candlestick demonstrates that the pair has been falling during several months, but having approached 84.75 mark it has recoiled. If the pair breaks through Fibonacci correctional level of 23.6, it will mean that this viewpoint is correct one. In this case it is expected that USD/JPY will move upwards to 88.15 with the next target at the resistance level of 89.11.
However, if the support level of 84.75 is breached, long positions should be closed because the breakout of this mark will lead to reaching multi-year lows.