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- USD/JPY Technical Strategy: Awaiting signal confirmation
- Recent gains arose post Piercing Line candlestick formation
- Yen at a critical juncture as 102.70 remains strong resistance
USD/JPY’s recent advance has continued, which follows on from a Piercing Line formation noted in the most recent candlestick report. However, the pair has seemingly encountered selling pressure at the key 102.70 mark in intraday trade which is acting to constrain further gains.
A Shooting Star candlestick appears to be forming on the four hour chart which may warn of declines for USD/JPY. However, we’re yet to see the bar close and confirmation from a successive down period which would offer a bearish signal. Conversely, if conviction amongst buyers is strong enough to push prices above 102.70 it would suggest a bullish technical bias and likely open up the $103.50 mark.
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Four Hour Chart - Created Using FXCM Marketscope 2.0
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by David de Ferranti, Market Analyst, FXCM
Contact and follow David on Twitter: @Davidde
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