Talking Points
- 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
Follow David on Twitter: @Davidde
To receive David’s analysis directly via email, please sign up here.