USD/JPY Bears Retreat As Hammer Points To A Potential Recovery
- USD/JPY Technical Strategy: Sidelines Preferred
- Shooting Star pattern near 104.00 offered ominous warning
- Hammer formation in intraday trade suggests a potential bounce
After staging an impressive decline the USD/JPY bears appear to be retreating following a failed attempt to push through support at 101.70. Traders will be on the lookout for a bullish reversal signal on the daily, with the four hour chart already hinting at a recovery for the pair.
USD/JPY: Shooting Star Offered Ominous Warning
Daily Chart - Created Using FXCM Marketscope 2.0
Drilling down to examine intraday price action; the four hour chart reveals the presence of a Hammer formation which is signaling a potential bounce for USD/JPY. This puts the resistance level at 102.70 back in focus in the session ahead.
USD/JPY: Eyeing 102.70 As Next Resistance
Four Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, FXCM
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.