USDJPY confirmed an Inverted Hammer reversal signal with a strong bullish close on the following day’s candle. Positive RSI divergence further bolstered the case for an upside scenario and I set up an entry order to get long at 87.11 in line with my fundamental outlook. The trade was triggered late into the Asian session and will initially target the 38.2% Fibonacci retracement of the 6/4-7/16 decline at 88.80. A stop-loss will be activated on a daily close below the 7/16 wick low at 86.26.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.
