FX.co ★ The candlestick analysis of the USD/JPY for October 13, 2010

On a daily chart, the USD/JPY had formed Hammer candlestick, thus signaling the upward movement. This candlestick indicates that the currency pair was declining during several months, but having come closer to 81.00, it rebounded. If the currency pair breaches Fibonacci correctional level 23.6, then this will mean that the point of view is correct. In this case, it is expected that the USD/JPY will move up to 85.90 with the next target to resistance level of 88.15.
However, if the support level of 81.00 is broken through, then long positions should be closed, as the breach of this mark then it will lead to achievement of multiyear lows.