FxWirePro: USD/JPY holds trendline support, good to go long on dips around 117 levels

USD/JPY has taken trendline support at 116.53 on Friday's trade and edged higher to currently trade at 117.20 levels.

• A Doji formation on Friday's candle after downtrend from 121.68 highs on Jan 29th suggests a reversal in trend.
   
• Technicals also point higher, Stochs show a bullish crossover at oversold levels and RSI on dailies is also biased higher.
   
• Bulls continue to cheer Friday's auspicious labour market report from the US, while markets seem to ignore the latest BoJ initiative and also the slight weakness seen on the Asian equities.
   
• We see scope for test of 118.95 (38.2% Fib of 123.76 to 115.97 fall), with strong support at 116 levels (falling trendline) and resistance at 117.43 (Feb 5th highs).
   

Recommendation: Good to go long on dips around 117 levels, SL: 116, TP: 117.80/118/118.95