USD/JPY Morning Star Pattern Puts Bounce On The Cards
USD/JPY Technical Strategy: Pending Long
Morning Star suggests potential for a recovery
Doji indicates bulls are holding back near 102.00
USD/JPY is hinting at a potential recovery based on a Morning Star formation on the daily. While considered a bullish reversal pattern, we are yet to see confirmation of the signal from a successive up day. Additionally, traders should note that strong selling pressure remains at the 102.00 handle which may act to restrain gains for the pair for the time-being. A daily close above 102.00 would favor longs with a potential target offered by former resistance at 102.70.
USD/JPY: Morning Star Hints At A Recovery
Daily Chart - Created Using FXCM Marketscope 2.0
Drilling down to examine intraday price action; the four hour chart reveals a Piercing Line pattern which is also bullish for USD/JPY. However, with a Doji near critical resistance at 102.00 the bears are seemingly unwilling to loosen their grip on prices just yet.
USD/JPY: 102.00 In Focus
Four Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, FXCM
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