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| DAILY CHART 1 |
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| DAILY CHART 2 |
Forex forecast: USD/JPY has tested the fibo 261.8 level on the daily chart 1 and failed to break downwards and closed above 261.8 fibo level.
Forex analysis: The failure of the jpy bears to take the price further down as shown on daily chart 1 suggest that jpy bears are getting weaker and the usd bulls are getting stronger. The failure of the jpy bears to take the price further down below the 261.8 level suggest that the bearish trand which started on 05, 2010 has ended and a new bullish trend has started or is about to start. This is further confirmed by the MACD which has already started a positive divergence, an indication of a trend reversal. The trend reversal is further confirmed by the two doji candle sticks that formed on the fibo 261.8 level before a bullish candle stick,went up to break above the trendline as shown on chart 1 and 2
forex strategy:enter at 84.151
stop loss at 83.297
take profit at 86.967 or 87.767
This is a long term trading strategy
READ MORE: currency analysis