FX.co ★ USD/JPY Candlestick Analysis for August 2011

The USD/JPY pair is rebounding after a successful testing of the Fibo correction level 23.6. Earlier on a 4-hour chart USD/JPY had formed Long Shadows, which gives a growth signal, and this was confirmed later.
This candlestick demonstrates that the currency pair was declining for a few weeks but having approached the mark of 75.94 it retraced which means that the bears were not able to fixate at that level and the bulls started to prevail.
Testing Fibo correction level 23.6 confirms the viewpoint. This is likely to trigger an upturn targeted to resistance at 79.42 where the Fibo correction level 61.8 is positioned.
The divergence of MACD also confirms the increasing trend.
It should be mentioned that is 75.94 is broken, long trades must be closed as this will target the pair to 75.00.