FX.co ★ USD/JPY candlestick analysis for January 17, 2011

The USD/JPY pair is rebounding up after it has declined to the resistance level near 82.30-82.40. Short-term viewpoint at the pair is still bullish.
Earlier on a 4-hour graph the USD/JPY pair has formed Hammer candlestick, indicating upside movement. This candlestick shows that the currency pair was decreasing for several days, but rebounded near 80.93.
This viewpoint is supported by the fact the pair has successfully broken the 23.6 Fibonacci correction level. Breakout of the resistance level 82.85 has targeted the pair to 84.50.
However, if support level 80.93 is broken, long positions should be closed as a break of this level will cause the pair to decrease to 80.20.