USD/JPY Consolidates As Bearish Pattern Fails To Find Confirmation
- USD/JPY Technical Strategy: Pending Short
- Failure To Breach 103.00 Casts Doubt On Gains
- Evening Star Sees Little Follow-Through
USD/JPY’s pullback has yielded an Evening Star formation which had warned of a potential correction for the pair. However, the absence of a successive down-day does little to confirm the bearish reversal pattern. Given nearby 102.77/103.00 zone of selling pressure overhead the pair may struggle to recover ground, which suggests a consolidative period ahead.
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart reveals few major reversal patterns over the most recent trading session which does little to offer a clear directional bias. A break of the nearby 102.40 floor would be required to open the next definitive level near 101.75.
USD/JPY: Searching For Direction With Reversal Patterns Absent
Four Hour Chart - Created Using FXCM Marketscope 2.0,Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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