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- USD/JPY Technical Strategy: Flat
- Support: 101.38 (Triangle floor)
- Resistance:102.93 (Triangle top), 103.75-104.14 (Mar 7 high, 38.2% Fib exp.)
The US Dollar began to recover against the Japanese Yen as expected after prices in put in a bullish Piercing Line candlestick pattern. Overall positioning hints the pair is carving out a Triangle chart pattern, a setup indicative of upside continuation in this case. A break above the Triangle top at 102.93 exposes the March 7 high at 103.75, followed by the 38.2% Fibonacci expansion at 104.13. Support is seen at the pattern’s bottom, now at 101.38.
Confirmation of the Triangle pattern requires a daily close above the formation’s upper boundary. We will wait for that to materialize to look for a long trade opportunity.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com