I bought USDJPY at 87.11 last week after prices confirmed an Inverted Hammer reversal signal with a strong bullish close on the following day’s candle, with positive RSI divergence further bolstering the case for an upside scenario. Prices have now overcome initial resistance with a daily close above 87.52, clearing the way for a run toward the 88.00 figure. I will remain long, targeting 88.80, the 38.2% Fibonacci retracement of the 6/4-7/16 decline. A stop-loss will be activated on a daily close below the 7/16 wick low at 86.26.
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