USD/JPY Teases Traders Near 102.00 Following Bearish Candlestick Pattern
- USD/JPY Technical Strategy: Pending short
- Prices breaking below recent range-bottom
- Bearish Engulfing pattern suggests sellers in control
USD/JPY may be set tor break its narrow range between 102.00 and 102.70. The emergence of a Shooting Star formation suggests the bears are 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. However a Gravestone Doji suggests some hesitation from sellers near 102.00. This reinforces the need to wait for a daily close to demonstrate strong conviction from the bears.
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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