FX.co ★ USD/JPY candlestick analysis for May 18, 2011

In a 4-hour graph the USD/JPY currency pair is continuing upside movement after a slight consolidation.
Earlier the USD/JPY currency pair formed candlestick combination Piercing line, indicating further upside movement.
This candlestick combination shows that the currency pair was declining for several days, but rebounded near the 79.60 level, which means that the bears could not solidify here and the bulls started to increase their influence.
If the USD/JPY successfully tests the Fibonacci correction level 23.6, it will prove this viewpoint. In this case we should expect upside movement to 82.85-83.16 where the Fibonacci correction level 61.8 is located.
Further upside movement is also supported by the bullish candlestick combination Rising Three Methods, which will probably strengthen the upside movement.
It is worth mentioning that if the 79.60 level gets broken, long positions should be closed as it will target the pair to 79.00.