The Pivot Point (PPV) is used as support and resistance at the same time; it is the first level that we observe. For this week the pivot points (weekly and monthly) for USD/JPY are: 79.09 weekly; 79.35 monthly.
The Japanese yen is located above the weekly pivot and above the Moving Average of 200 periods (blue). Therefore, taking into account the pivot points, we can conclude the following.
The level of 79.09 (Pivot) is the weekly pivot, the past few weeks the pair was trading below this level, there is possible a correction to the pivot, which now serve as support, therefore, there can be a good buying opportunity at this level. As the upward trend has started, the pair will have a strong resistance to be overcome at 80.03 (W_R1) where the pair is coming out of the downward pressure. A break of the first weekly resistance of 80.03 could be extended up to 81.45 (W_R3).
Signal For 20 - 24 August 2012
Buy long at 79.09, take profit at 80.03, Stop Loss bellow weekly Pivot of 79.09.
____WEEKLY_____
Weekly - R3 = 81.45
Weekly - R2 = 80.51
Weekly - R1 = 80.03
Weekly Pivot = 79.09
Weekly - S1 = 78.61
Weekly - S2 = 77.67
Weekly - S3 = 77.19
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____MONTHLY____
Monthly - R3 = 84.64
Monthly - R2 = 80.86
Monthly - R1 = 79.49
Monthly Pivot = 78.71
Monthly - S1 = 77.34
Monthly - S2 = 76.56
Monthly - S3 = 75.19
