USD/JPY Bearish Candlestick Pattern Forms Near Key Resistance
- USD/JPY Technical Strategy: Sidelines Preferred
- Bulls hesitate near key resistance as Doji forms
- Bearish Engulfing pattern emerges on four hour chart
USD/JPY’s recovery has been capped at the psychologically-significant 102.00 handle. While a Doji appears to be forming, which signals hesitation from the bulls, we’re yet to see a reversal candlestick pattern appear on the daily.
USD/JPY: Recovery Stalls As Doji Forms Near 102.00
Daily Chart - Created Using FXCM Marketscope 2.0
An examination of intraday price action on the four hour chart reveals a Bearish Engulfing pattern, which may offer an early warning sign for USD/JPY. The reversal signal typically needs to receive confirmation from a successive down-period, which if received would suggest a correction to support at 101.60.
USD/JPY: Bearish Engulfing Pattern Awaits Confirmation
Four Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, DailyFX
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