USDJPY: Stay Long Targeting Above 82.00
I entered long USDJPY two weeks ago at 81.09 as it put in a bullish Piercing Line candlestick pattern and broke above a falling channel top set from April. I am expecting prices to follow Treasury yields higher as the Fed’s QE2 program expires against a backdrop of increasing fiscal stress in the US, pressuring borrowing costs higher. The pair has met my initial target at 81.83, the 38.2% Fibonacci retracement of the 4/6-5/5 drop, and I have moved my stop to breakeven as well as revised the target to 82.54, the 50% Fib.
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