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Forex Strategy - USD/JPY Piercing Line Pattern Opens Advance To 102.70

Forex Strategy - USD/JPY Piercing Line Pattern Opens Advance To 102.70

2014-03-18 11:49:00
David de Ferranti, Currency Analyst
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Talking Points

  • USD/JPY Technical Strategy: Longs preferred
  • Piercing Line formation opens advance to 102.70
  • Warnings of intraday weakness on the four hour chart

USD/JPYhas bounced off key support at the 101.20 mark as the formation of a Piercing Line candlestick pattern suggests a potential retracement to resistance at 102.70.

USD/JPY: Piercing Line Offers Bullish Reversal Signal

Forex-Strategy---USDJPY-Piercing-Line-Pattern-Opens-Advance-To-102.70_body_Picture_2.png, Forex Strategy - USD/JPY Piercing Line Pattern Opens Advance To 102.70

Daily Chart - Created Using FXCM Marketscope 2.0

However, there are warnings signs of an intraday dip for USD/JPY based on the Hanging Man formation that has emerged on the four hour timeframe. The scope for a decline may be limited given the strong buying support evident at 101.20 (as also noted on the daily).

USD/JPY: Support Found At 101.20

Forex-Strategy---USDJPY-Piercing-Line-Pattern-Opens-Advance-To-102.70_body_Picture_1.png, Forex Strategy - USD/JPY Piercing Line Pattern Opens Advance To 102.70

Four Hour Chart - Created Using FXCM Marketscope 2.0

By David de Ferranti, Market Analyst, FXCM

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