USD/JPY’s recovery may be set to continue based on a Morning Star formation on the daily which has received confirmation from a successive up day. A daily close above 102.00 would favor longs with a potential target offered by former resistance at 102.70.
USD/JPY: Morning Star Supports Continued Recovery
Daily Chart - Created Using FXCM Marketscope 2.0
Drilling down to examine intraday price action; the four hour chart reveals a Bullish Engulfing pattern, which is also supportive of continued gains for USD/JPY.
USD/JPY: Eyes 102.70 Following Break Above Resistance
Four Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, FXCM
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