FX.co ★ USD/JPY technical overview for May 12, 2011

At the moment we observe a possible rebound of the price from the Fibonacci 23.6 level. The SAR parabolic system was broken yesterday; two system points were formed below the graph. At the same time, we should mention that the price is now located in an extremely overbought zone, which is indicated by the Stochastic oscillator. The Alligator has not closed its mouth completely yet, however the moving averages are starting to narrow. Now we can expect a possible stop and a reverse of the price from the Fibonacci level.

S&R levels:

Support - 79.61

Resistance - 81.88