USD/JPY Bulls Return On Test of Key Support As Morning Star Emerges
- USD/JPY Technical Strategy: Longs Preferred
- Morning Staroffers bullish signal near key support
- Harami warns of intraday weakness
The USD/JPYbulls may be able to breathe a sigh of relief following the pair’s respect of crucial support at 101.20. The bounce off the range-bottom has yielded a Morning Star formation, which suggests the potential for a push higher if confirmed by a successive up-day. Sellers are likely to emerge at the range-top near 102.77 with interim resistance looming at the psychologically-significant 102.00 handle.
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
Scrutinizing the four hour chart; the Piercing Line formation offered an early indication of the potential for USD/JPY to recover ground. However, a Harami pattern near 101.65 warns of a short-term pullback over the session ahead. Given the context afforded by the daily, a slight correction would be preferred for new long entry opportunities.
USD/JPY: Harami Warns Of Intraday Weakness
Four Hour Chart - Created Using FXCM Marketscope 2.0,Volume Indicator Available Here
By David de Ferranti, Currency 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.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.