Forex Strategy: USD/JPY Plunges Following Shooting Star Candlestick
- USD/JPY Technical Strategy: shorts preferred
- Shooting Star pattern near 104.00 offered ominous warning
- 102.00 in focus as the next potential support level
The Shooting Star pattern noted in recent candlestick’s reports has resulted in extended declines for USD/JPY with the pair plunging below the 103.00 handle in recent trading. There are few signs of the push lower slowing, given a bullish reversal signal remains missing on both the daily and four hour charts. This puts the psychologically-significant 102.00 mark in focus as the next potential level of support for the pair.
USD/JPY: Shooting Star Offered Ominous Warning
Daily Chart - Created Using FXCM Marketscope 2.0
Drilling down to the four hour chart; the unusually long series of Doji candlesticks near the critical 104.00 level suggested deliberation amongst the bulls. With the bears taking control of prices and sending USD/JPY spiraling below prior support zones, there is some doubt over the potential for a bounce in intraday trade.
USD/JPY: Eyeing 102.00 As Next Support
Four Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, FXCM
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