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.
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
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