Prices took out the 76.4% Fibonacci expansion at 86.06, exposing the 100% level at 86.74. A further break above that targets the 123.6% expansion at 87.43. The 86.06 mark has been recast as near-term support. A reversal back below that aims for the 61.8% Fib at 85.64.

Forex_Analysis_USDJPY_Classic_Technical_Report_12.28.2012_body_Picture_1.png, Forex Analysis: USD/JPY Classic Technical Report 12.28.2012

4-hour Chart - Created Using FXCM Marketscope 2.0

--- Written by Ilya Spivak, Currency Strategist for

To contact Ilya, e-mail Follow Ilya on Twitter at @IlyaSpivak

To be added to Ilya's e-mail distribution list, please CLICK HERE

New to FX? Watch this Video. For live market updates, visit the Real Time News Feed