News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Forex Strategy: USD/JPY Bounces Post Piercing Line Candlestick Formation

Forex Strategy: USD/JPY Bounces Post Piercing Line Candlestick Formation

David de Ferranti, Currency Analyst

To receive David’sanalysis directly via email, please SIGN UP HERE

Talking Points

  • USD/JPY Technical Strategy: Shorts pending on bearish candle pattern
  • Recent gains arose post Piercing Line candlestick formation
  • Former trendline support may prompt sellers to emerge and cap further gains

USD/JPY is mounting an assault on former trendline support as the pair retraces some of its recent losses. The bullish advance was foreshadowed by a Piercing Line candlestick formation on the 4 hour chart that occurred near buying support at the 101.25 mark.

A quick retracement back to the original trendline breakout point is commonly followed by a reversal in the original direction of the break. This suggests sellers may look to emerge at current prices and put downward pressure on the pair. However, we’re yet to see a bearish reversal candlestick pattern emerge, and as such a neutral technical bias is preferred. If fresh declines were to materialize, buyers may help prop up prices near the former support level at 101.80.

Confirm your chart-based trade setups with the Technical Analyzer.

Forex_Strategy_USDJPY_Bounces_Post_Piercing_Line_Candlestick_Formation_body_Picture_1.png, Forex Strategy: USD/JPY Bounces Post Piercing Line Candlestick Formation

Four Hour Chart - Created Using FXCM Marketscope 2.0

--- Written by David de Ferranti, Market Analyst, FXCM

Contact and follow David on Twitter: @Davidde

New to FX? START HERE

For live market updates, visit the Real Time News Feed

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES