Strategy: Pending Long

As we suspected, USDJPY moved higher after put in a Hammer candlestick above support at 76.14. Prices have now cleared falling trend line support-turned-resistance set from May, with the bulls aiming to challenge the 38.2% Fibonacci retracement level at 79.36. Risk-reward considerations argue against entering long with prices so close to resistance and we will look for a corrective pullback to yield a buying opportunity.

USDJPY_Looking_to_Enter_Long_on_Pullback_body_Picture_5.png, USDJPY: Looking to Enter Long on Pullback

--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com

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