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Long USDJPY as it breaks above a key level

Market Analysis

USDJPY, Daily              

The USDJPY had been on my watch list for a few days waiting for a turn in the USD following the 20,000 landmark in the DOW and continued strength in global stock markets. The dollar was very well bid up yesterday and a long position was opened on last nights close at 114.52.  The USD has continued to move overnight against EURUSD clocked a low of 1.0654, Cable touched 1.2525 and JPY reached 115.25.  The entry last night was taken following the strong floor at 112.70 zone earlier in the week. See how the collection of Marubozu and Yo Sen candles could not break below this level. Also there was the break out of a previous congestion zone between 113.60 and 114.15 and finally last nights close also broke above the trend line from 15 December.

Target 1 is again a congestion point this time it is the 61.8 Fibonacci level of the December 15 to January 24 downtrend and a little over the 14DATR at 116.40. Target 2 is back towards the previous December high at 118.20. The 2016 high was 121.40. The Parabolic SAR also turned positive yesterday and the RSI is 51.8 and rising. Resistance to the up move will be the 20 and 50 DMA at 115.13.    

 

https://analysis.hotforex.com/ has had a 100% start to 2017 with five trades achieving both Targets 1 and 2 and a four trades hitting target 1 for a total net gain of 3344 pips.

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Stuart Cowell

Senior Market Analyst

HotForex

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