Forex Strategy: USD/JPY Pushes Off Support Post Piercing Line Pattern
- USD/JPY Technical Strategy: Longs preferred
- Piercing Line formation near support offers buying cue
- 102.70 Resistance level looms on daily
USD/JPYhas jumped towards the 102.70 level of resistance following the formation of a Piercing Line formation on the daily (see below). While some selling pressure has emerged, the absence of a reversal signal leaves longs preferred on an upside break of 102.70 which would likely open the monthly highs at 103.50.
USD/JPY: Piercing Line Prompts Bounce
Daily Chart - Created Using FXCM Marketscope 2.0
As noted in yesterday’s candlesticks report USD/JPY was primed for a bounce at the 101.20 level following signs of hesitation amongst sellers indicated by the Doji candlestick formation. While the bulls seem to be losing steam in Asian trading in the absence of a bearish reversal signal, longs remain preferred.
USD/JPY: Intraday Resistance At 102.40
Four Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, FXCM
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.