Forex: USD/JPY Technical Analysis – Long Position Still in Play
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- USD/JPY Technical Strategy: Long at 102.80
- Support: 101.95 (channel bottom), 101.76 (Jan 27 low)
- Resistance: 103.06 (14.6% Fib exp.), 103.85 (23.6% Fib exp.)
We entered long USD/JPY at 102.80 as prices showed a bullish Morning Star candlestick pattern, hinting at a bounce upward. Ideally, we are looking for a daily close above 103.85 to complete a Flag chart pattern, signaling resumption of the long-term uptrend.
A stop-loss has been set to be activated on a daily close below 101.76, the January 27 low. Our long position presumes that the Morning Star pattern has marked a reversal higher. That assumption would be inherently invalidated if the pair produces a close beneath the pattern’s lower extreme, making such a scenario the natural trigger to abandon the trade.
Confirm your chart-based trade setups with the Technical Analyzer.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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