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The US Dollar launched a recovery against the Japanese Yen as expected after prices produced a bullish Piercing Line candlestick pattern. On the whole, price action appears to be tracing out a Triangle chart pattern and hinting at upside trend continuation. A break above the Triangle top (now at 102.89) 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 101.40.
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