USD/JPY Resumes Declines After Recovery Stalls Alongside Doji Formations
- USD/JPY Technical Strategy: Sidelines Preferred
- Shooting Star pattern near 104.00 offered ominous warning
- Dojis highlighted hesitation by the bulls following test of 102.00
USD/JPY has resumed its descent as the bears once again take charge of price action. The absence of a bullish reversal signal on both the daily and four hour chart casts doubt over the potential for a recovery.
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 several Doji formations near the critical 102.00 handle, which signaled the potential for the USD/JPY recovery to stall. In the session ahead, buyer s may look to step in at prior support near 101.20.
USD/JPY: Intraday Recovery Stalled Near 102.00
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.