USD/JPY Piercing Line Pattern May Find Limited Follow-Through
- USD/JPY Technical Strategy: Sidelines Preferred
- Piercing Line may find limited follow-through
- Range between 101.20 and 102.77 remains in play
USD/JPY’s recent recovery has resulted in a Piercing Line candlestick pattern, which indicates the bulls may be set to stage a return. However, with confirmation from an ensuing up-day absent and the psychologically-significant 102.00 handle offering noteworthy resistance, the signal may fail to elicit a bounce back to the range-top at 102.77.
USD/JPY: Piercing Line Pattern May Fail To Deliver Bounce
Daily Chart - Created Using FXCM Marketscope 2.0
Similarly, the Piercing Line pattern also present on the four hour chart may fail to find much follow-through with resistance at 102.00 looming overhead.
USD/JPY: Recovery Post Piercing Line Limited By Nearby Resistance
Four Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, DailyFX
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