USD/JPY Struggles To Sustain Gains As Dojis Denote Indecision
USD/JPY Technical Strategy: Longs Preferred
Absence of Bearish Candlesticks Casts Doubt On A Correction
Daily Close Above 109.40 May Open Rise Towards 110.65
USD/JPY has seemingly lost momentum after tapping the 109 target offered in recent reports. A short body session near the 109.40 ceiling suggests hesitation from the bulls. Yet amid a void of key reversal patterns a correction is questionable. A daily close above the 109.40 mark could open the next leg higher towards the August ’08 high at 110.65.
USD/JPY: Bulls Lose Steam Near 109.40 Ceiling
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart tells a similar tale of indecision as the daily. A string of Doji formations near the 109.20 mark indicates hesitation from the bulls to lead the pair higher. Yet a void of bearish signals casts some doubt over the potential for a pullback over the session ahead. Buying interest may be renewed at the 108.50 mark.
USD/JPY: Dojis Denote Indecision In Intraday Trade
Four Hour Chart - Created Using FXCM Marketscope 2.0,Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
Follow David on Twitter: @Davidde
To receive David’s analysis directly via email, please sign up here.
Learn how to read candlesticks to help identify trading opportunities with the DailyFX Candlesticks Video Course.