Talking Points
- USD/JPY Technical Strategy: Shorts Preferred
- Prices break below 102.00 following Shooting Star pattern
- Doji suggests some hesitation from the bears in intraday trade
USD/JPY remains below the psychologically-significant 102.00 handle with the absence of a bullish reversal signal making a bounce look unlikely at this stage. Further declines may be met by buying support at the 101.20 mark.
USD/JPY: Open To Further Declines With Bullish Candlestick Missing
Daily Chart - Created Using FXCM Marketscope 2.0
Examining the four hour chart; the Doji near 102.00 signaled a lack of conviction amongst the bulls near the key resistance level. With a bullish reversal pattern also absent in intraday trade, the potential for a bounce may be limited.
USD/JPY: Bulls Lose Steam On Retest Of 102.00
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.
