USD/JPY Struggles As Piercing Line Pattern Awaits Confirmation
- USD/JPY Technical Strategy: Sidelines Preferred
- Shooting Star pattern near 104.00 offered ominous warning
- Piercing Line on four hour chart hints at intraday bounce
USD/JPY continues to struggle below resistance at the 101.70 mark. The absence of a bullish reversal pattern on the daily still casts doubt over the potential for a recovery in the pair. This comes after the Shooting Star formation near 104.00 signaled the possibility of some steep declines.
Daily Chart - Created Using FXCM Marketscope 2.0
Drilling down to examine intraday price action; the four hour chart reveals a Piercing Line pattern that awaits confirmation. While considered a bullish reversal pattern, it has yet to receive confirmation from a successive up-period. Traders should also be mindful of the potential for strong selling pressure to cap an intraday bounce around the 102.00 handle.
USD/JPY: Sellers Likely To Emerge At 102.00
Four Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, FXCM
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