USD/JPY Evening Star Near 103.00 Offers Ominous Warning
- USD/JPY Technical Strategy: Pending Short
- Failure To Breach 103.00 Casts Doubt On Gains
- Evening Star Warns Of Drop To 102.20
USD/JPY’s pullback has yielded an Evening Star formation which may be the precursor to a further correction. Confirmation of the bearish reversal pattern from a successive down-day would suggest a retreat to the nearby floor at 102.20. A daily close above the 103.00 handle would be required to invalidate a bearish bias.
USD/JPY: Evening Star Warns Of Correction
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart reveals a Harami pattern in intraday trade, which has generated an intraday bounce for USD/JPY. However, given the proximity to nearby selling pressure around 102.75/103.00 further gains may be limited. The emergence of a bearish reversal pattern would be taken as an opportunity to sell the pair with the immediate downside target of 102.25.
USD/JPY: Harami May Find Limited Follow-Through
Four Hour Chart - Created Using FXCM Marketscope 2.0,Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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