Forex Strategy - USD/JPY Aims Higher As Shooting Star Shrugged Off
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USD/JPY Technical Strategy: Longs preferred
Recent gains arose post Piercing Line formation
Shooting Star fails to receive confirmation
The USD/JPY bears were overpowered in recent trading as the bulls took and pushed prices above the prior range-top resistance level at 102.70. This follows on from a lack of confirmation for a Shooting Star candle formation noted on the four hour chart.
With a bearish reversal pattern seemingly absent, there is a hint that USD/JPY could continue to travel higher, with sellers likely to emerge at the 103.50 level (pictured on the daily).
Traders should note that key fundamental event risk looms ahead. One of the most influential data releases of the month, US Non-Farm-Payrolls, is due to cross the wires in the US session, and may negate technical signals offered on USD/JPY.
Confirm your chart-based trade setups with the Technical Analyzer.
Four Hour Chart - Created Using FXCM Marketscope 2.0
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by David de Ferranti, Market Analyst, FXCM
Contact and follow David on Twitter: @Davidde
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