USD/JPY Correction Sought for Long Entry
USD/JPY Technical Strategy: Pending Long
Prices put in a bearish Dark Cloud Cover candlestick pattern, hinting a move lower is ahead. Negative RSI divergence bolsters the case for a downside scenario. Further still, the early outlines of Head and Shoulders top are starting to reveal themselves. Confirmation requires a close below 91.92 the 14.6% Fibonacci retracement, which would initially expose the 23.6% level at 90.36. Near-term resistance is at 94.45, the February 11 high. We will look to a move lower as a buying opportunity in the weeks ahead.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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