FX.co ★ The candlestick analysis of USD/JPY for 2010/07/09

USD/JPY is moving up further from the mark of 87.00. As it was mentioned before, a “Hammer” candle developed on a 4-hour chart. This candle shows that earlier the currency pair has been falling during several days, but having approached the level of 86.96 it bounced. Also, the pair successfully broke through Fibonacci correction level of 23.6%. This means that this viewpoint is correct. It is expected that the USD/JPY pair will move upwards to 89.23 with the next target at Fibonacci correctional level of 61.8%. On the other hand, it is recommended to set stop orders slightly below 86.96, as the breach of this mark will open the way to 84.77.