USD/JPY Hits Selling Pressure At 103.00 Yet Reversal Patterns Lacking
- USD/JPY Technical Strategy: Sidelines Preferred
- Failure To Breach 103.00 Casts Doubt On Gains
- Awaiting Bearish Patterns To Signal A Reversal
USD/JPY has continued its ascent following a Harami pattern on the daily with the pair testing key resistance near 103.00 in recent trading. The failure to breach the psychologically-significant barrier casts some doubt on further gains. However, an absence of bearish patterns also makes a reversal questionable. This leaves the sidelines preferred until a more constructive setup presents itself.
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart reveals a similar narrative as the daily. A Harami pattern has failed to find follow-through which has left a void of reversal patterns. Several Doji formations indicate noteworthy indecision amongst traders near the 103.00 handle.
USD/JPY: Dojis Suggest Bulls Lose Steam Near 103.00 Handle
Four Hour Chart - Created Using FXCM Marketscope 2.0,Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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