Talking Points
- 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
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.