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We bought USD/JPY at 102.82, looking for the US Dollar to extend higher against the Japanese Yen after prices completed a bullish Triangle chart formation as expected. The pair is now testing above our initial objective at 103.75, the March 7 high and we will book profit on half of the position. The stop-loss on the remainder of the position will be moved the breakeven level (102.82).
A daily close above the 38.2% Fibonacci expansion at 104.14 would expose the 50% level at 105.19. The first layer of major support is in the 102.59-62 area, marked by the Triangle top and a horizontal pivot dating back to early February.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com