Forex Strategy: USD/JPY Dojis Denote Deliberation Amongst Bulls
- USD/JPY Technical Strategy: Longs preferred on breakout
- Dojis on both the daily and four hourly charts suggest indecision
- Clearance of resistance at 102.70 may open advance to 103.50
USD/JPYhas jumped towards the 102.70 level of resistance following the formation of a Piercing Line formation on the daily (see below). However, a pair of Doji candles denotes some deliberation amongst the bulls and suggests new longs are better served on a clearance of 102.70 which would likely open up the 103.50 mark.
USD/JPY: Dojis Denote Deliberation
Daily Chart - Created Using FXCM Marketscope 2.0
Drilling down to the four hour chart; there is evidence of a drawn-out struggle between the bulls and bears around the critical 102.50 intraday resistance level. While the Doji candlesticks signal indecision, a bearish reversal pattern would be required to support a bearish technical bias for USD/JPY.
USD/JPY: Intraday Resistance Holds At 102.40
Four Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, FXCM
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