Forex Strategy: USD/JPY Hanging Man Results In Further Weakness
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- USD/JPY Technical Strategy: Hanging man continues to warn of potential weakness
- Stalling of the uptrend on the pair may open up support level at 102.00
- Risk –reward at current prices is not optimal for new shorts
The recent uptrend in USD/JPY appears to have stalled following the formation of a Hanging Man candle pattern on the 4 hour chart. This comes as sellers continue to suppress gains in the pair around the 102.63 level of resistance.
A potential target for short positions is offered by the 102.00 support mark which coincides with the 38.2% Fib Retracement level. However, the risk-reward on new shorts at current levels is less than ideal.
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Four Hour 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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