USD/JPY Stretches Higher as Triangle Yields Bullish Breakout
Chart prepared by Christopher Vecchio using Marketscope 2.0
FOREX Analysis: With the confirmed break of the Symmetrical Triangle first noted on Wednesday, the USDJPY is poised to make a run at key technical resistance that has yielded the June swing high (before a 500-pip dive in less than two weeks) at ¥99.28 (and a former 50% from the May 22 high to the then-June 7 low at 99.35). Price has unfolded as expected, having noted earlier “a near-term bullish bias is warranted as long as price holds 96.65/80; a medium-term bearish bias is warranted as long as price holds 99.25/35.”
FOREX Trading Strategy: As overhead resistance approaches at 99.25/35, longs would be cautioned to lighten the load as we’ve already seen this area provoke a violent response. Similarly, short-term indicators (Slow Stochastics (5,3,3) and RSI (14)) on H1 and H4 charts suggests that the zip line from Wednesday’s lows may be finished. Ultimately, now that the downtrend from the May 22 has been broken, the Symmetrical Triangle suggests a continuation towards 99.80/100.00 and 100.55/75.
--- Written by Christopher Vecchio, Currency Analyst
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