Forex Strategy: USD/JPY Eyes 104.90 As Reversal Signal Remains Absent
- USD/JPY Technical Strategy: Longs preferred
- 1st target hit, looking for extension to 104.90
- Absence of reversal signal suggests gains to continue
Following the breakout above 102.70 the initial target offered at 103.50 for USD/JPY has been hit. While the psychologically-significant level of 104.00 may put up some resistance, a bearish reversal signal remains absent on both the daily and four hour timeframes. This suggests a possible extension towards 104.90 over the coming days.
USD/JPY: Breaks Out Above 103.50
Daily Chart - Created Using FXCM Marketscope 2.0
Drilling down to the four hour chart; the bulls continue to dominate prices following a drawn-out struggle with sellers near 102.50/70.
USD/JPY: May Continue Gains As Reversal Signal Lacking
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.