USD/JPY 102.00 In Sight As Doji Suggests Bears In Doubt
- USD/JPY Technical Strategy: Sidelines Preferred
- Long-Legged Doji signaled shift in the tides
- Absence of reversal signal puts 102.00 in sight
USD/JPY has continued its climb back towards the psychologically-significant 102.00 level in recent trading. The Long-Legged Doji near 101.20 acted as a signal that the bears had lost conviction on the pair after testing at a break below the key support level. At this stage a bearish pattern remains absent which precludes a correction. However, with resistance looming nearby, further gains may be limited.
Daily Chart - Created Using FXCM Marketscope 2.0
An examination of intraday price action on the four hour chart reveals a Bullish Engulfing pattern which helped foreshadow USD/JPY’s bounce. Similarly to the daily, a bearish reversal signal is seemingly absent, which suggests a push to 102.00 may be possible.
Four Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, DailyFX
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