USD/JPY At A Crossroads As A Doji Suggests Doubt Amongst The Bulls
- USD/JPY Technical Strategy: Pending Short
- Doji Suggests Indecision, Yet Bearish Patterns Absent
- Daily Close Below 102.20 Needed To Open Range-Bottom
USD/JPY remains a critical juncture near its range-top with signs of indecision made evident by a Doji formation on the daily. While not considered a key reversal pattern, the candlestick suggests hesitation from the bulls to lead the currency higher which may be indicative of a small top. A retreat below the 102.20 floor would be required to open the range-bottom at 101.20.
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart has been littered with key reversal candlestick patterns. Yet few have found lasting follow-through. This casts some doubt on the potential for a Hammer formation in intraday trade to lead a sustained advance for the pair. A retest of the 102.75 ceiling and emergence of a bearish formation could offer a new opportunity for short positions.
USD/JPY: Awaiting Reversal Signal On Retest of 102.75/103.00
Four Hour Chart - Created Using FXCM Marketscope 2.0,Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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