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
- Continued downtrend supports potential target of 100.770
- Upcoming BOJ rate decision provides noteworthy upcoming fundamental event risk
As noted in last week’s candlesticks report a Hanging Man formation hinted at continued weakness for USD/JPY. The target offered of 102.00 has now been hit and a further decline would likely encounter buying support at the 100.770 mark (the yearly low).
With an absence of bullish reversal signals on the daily, the downside continues to be preferred. This is also supported by an indication of a short-term downtrend as prices continue to trade below their 20 SMA.
Noteworthy event risk lies ahead for USD/JPY in the next 24 hours with the BOJ rate decision (full write-up on the fundamentals for the week here).
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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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