USD/JPY Set For Further Falls As Bearish Pattern Dominates Price Action
- USD/JPY Technical Strategy: Shorts Preferred
- Bearish Engulfing pattern suggests declines to continue
- Range-bottom offers target of 101.20 for shorts
USD/JPY may be set to extend its recent declines following the formation of a Bearish Engulfing candlestick pattern near the range-top at 102.77. This may afford new short opportunities with an ultimate target offered by the range-bottom at 101.20. Interim buying support is likely to emerge at the psychologically-significant 102.00 handle.
USD/JPY: Bearish Engulfing Pattern Emerges Near Key Resistance
Daily Chart - Created Using FXCM Marketscope 2.0
The Hammer formation on the four hour chart failed to stir the USD/JPY bulls. A close below buying support at 102.25 would provide an indication of strong conviction amongst the bears and pave the way for an extended decline to the next level of buying support at 101.50.
USD/JPY: Close Below 102.25 Needed To Open 101.50
Four Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, DailyFX
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