Strategy: Pending Long
USDJPY followed a Bullish Engulfing candlestick pattern with a break through resistance at a falling trend line set from mid-March, hinting an upward reversal may be in the works. Risk/reward parameters are not ideal to enter long with prices positioned just ahead of resistance at 79.65, the 23.6% Fibonacci expansion. We will wait for either a pullback to re-test the trend line (now squarely at the 79.00 figure) or a daily close above resistance to look for a more compelling setup.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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