Forex Strategy: USD/JPY Hanging Man Emerges After Test of 104.00
- USD/JPY Technical Strategy: Longs preferred
- Bearish reversal signal emerges following test of 104.00
- Dip back to 103.50 to offer new long opportunities
The USD/JPY bulls have halted their charge at the psychologically-significant 104.00 handle. While a bearish reversal signal is lacking on the daily, intraday price action suggests the potential for a dip. A correction back to prior resistance at 103.50 would be seen as an opportunity to enter new long positions.
USD/JPY: 104.00 Prompts Bulls To Pause
Daily Chart - Created Using FXCM Marketscope 2.0
Drilling down to the four hour chart; a test of the 104.00 handle in Asian trading has prompted the formation of a Hanging Man candlestick, which offers an ominous warning. However, the bearish reversal signal awaits confirmation from a successive down period, which if received, would likely prompt a dip back to 103.60
USD/JPY: Hanging Man Near Key Resistance Offers Warning
Four Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, FXCM
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