FX.co ★ USD/JPY candlestick analysis for January 4, 2011

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. The USD/JPY is expected to move upwards to the resistance level 82.85, where 50.0 Fibonacci correction level is located.
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.