Forex Strategy - USD/JPY Shooting Star Suggests Near-Term Correction
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- USD/JPY Technical Strategy: Pending Short
- Shooting Star formation on daily suggests correction
- Break below 102.80 may open up 101.80 mark
A Dark Cloud Cover candlestick pattern on the four hour chart is warning of potential declines for USD/JPY as the pair struggles near the psychologically significant 103.00 handle. A break below 102.80 (38.2% Fib Retracement level) would likely open up former support at 101.80.
The daily chart has also revealed the potential for a correction given the Shooting Star formation near 103.50, which has received confirmation from a successive down day. However, an uptrend is also evident on the daily, demonstrated by prices being above the 20 SMA. As such shorts would be seen as only a short-term counter-trend opportunity.
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Four Hour Chart - Created Using FXCM Marketscope 2.0
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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