USDJPY: Holding Long into FOMC
I entered long USDJPY at 78.96 after prices put in a bullish Piercing Line candlestick pattern on a retest of falling trend line resistance-turned-support set from mid-March, hinting a move higher is ahead. I am expecting the Federal Reserve will hold off on QE3 today, which will push the pair higher. As such I will remain long, aiming for an initial objective at 79.69 marked by the 23.6% Fibonacci expansion (to be revised higher if the pair breaches the level on a daily closing basis). A stop-loss will be activated on a daily close below 78.60, the June 15 low.
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