USD/JPY Drops Below 102.00 Following Shooting Star Pattern
- USD/JPY Technical Strategy: Shorts preferred
- Prices breaking below recent range-bottom
- Bearish Engulfing pattern suggests sellers in control
USD/JPY looks to be finally breaking its narrow range between 102.00 and 102.70 in early European trading. The emergence of a Shooting Star formation suggests the bears may be looking to firm their grip on prices. A daily close below 102.00 would be seen as an opportunity to enter short with a target offered by the next level of support at 101.20.
USD/JPY: Threatens Break of Recent Range Following Shooting Star
Daily Chart - Created Using FXCM Marketscope 2.0
Examining the four hour chart, the Bearish Engulfing pattern near 102.70 has resulted in extended declines for USD/JPY. While a Gravestone Doji suggests some hesitation from sellers, a bounce may be limited in intraday trade, given nearby support-turned-resistance at 102.00.
USD/JPY: Bearish Engulfing Pattern Near Key Resistance Delivers Declines
Four Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, DailyFX
Follow David on Twitter: @Davidde
To receive David’s analysis directly via email, please sign up here.
Learn how to read candlesticks to help identify trading opportunities with the DailyFX Candlesticks Video Course.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.