USD/JPY Pulls Back As Traders Look Past Piercing Line Formation
- USD/JPY Technical Strategy: Sidelines Preferred
- Piercing Line negated by post FOMC pullback
- Range between 101.20 and 102.77 remains in play
As noted in yesterday’s candlesticks report the June FOMC Meeting offered the potential for significant US Dollar volatility. The resulting price action post the meeting has negated the Piercing Line pattern posted on the daily. With bullish candlestick patterns now absent for the pair, a test of the range-bottom at 101.20 now looks possible.
Daily Chart - Created Using FXCM Marketscope 2.0
The Harami pattern near 102.25 on the four hour chart signaled the potential for a pullback in intraday trade. Similarly to the daily, a bullish candlestick signal is missing, which casts doubt over the possibility of a recovery over the session ahead.
USD/JPY: Absence of Bullish Signal Casts Doubt On Bounce
Four Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Currency Analyst, DailyFX
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