Forex Strategy - USD/JPY Correction Continues Post Shooting Star
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- USD/JPY Technical Strategy: Shorts preferred
- A Dark Cloud Cover formation suggests further declines
- Daily also hinting at a correction against the backdrop of an uptrend
The Dark Cloud Cover candlestick pattern on the four hour chart continues to warn of declines for USD/JPY following a break below the psychologically-significant 103.00 handle. The 50% Fib Retracement level appears to be offering some intraday support, however a break may quickly open up the 102.17 mark.
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, suggesting caution is needed when looking at shorts.
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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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