FX.co ★ USD/JPY Candlestick Analysis for August 30, 2011

The USD/JPY pair is demonstrating consolidation after a continuous downfall. Earlier in a 4-hour chart USD/JPY formed Long Shadows candlestick which gives a growth signal, and this was confirmed later.
This candlestick demonstrates that the currency pair was declining for a few weeks but rebounded near the 75.94 level which means that the bears were not able to fixate at that level and the bulls started to prevail.
Test of the Fibonacci correction level 23.6 confirms the viewpoint. This is likely to trigger an upturn targeted to resistance at 79.42 where the Fibonacci correction level 61.8 is positioned.
The MACD divergence also confirms the increasing trend.
It should be mentioned that if 75.94 is broken, long trades must be closed as this will target the pair to 75.00.