USD/JPY 102.70 In Focus Following Bullish Intraday Signal
- USD/JPY Technical Strategy: Longs preferred
- Evening Star may be overlooked given nearby buying support
- Harami in intraday trade offered short-term buying signal
USD/JPY remains compressed within a narrow trading range between 102.00 and 102.70. While an Evening Star pattern is evident on the daily, the bearish candlestick formation is made less significant by its formation within the persistent range.
Traders should be mindful of the potential for a surprise US Non-Farm Payrolls reading in the coming hours to spark significant volatility for US Dollar based pairs. The release of the figures will be covered live in DailyFX Plus.
Daily Chart - Created Using FXCM Marketscope 2.0
As noted in yesterday’s candlesticks report the recent test of the range-bottom that coincided with a Harami pattern offered a short term buying opportunity. While the target offered by 102.70 remains to be hit, we remain void of a bearish reversal signal that suggests further gains are possible.
Four Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, DailyFX
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