USD/JPY Bulls Losing Their Grip As Dojis Emerge Near 104.00
- USD/JPY Technical Strategy: Sidelines Preferred
- Intraday Pullback Warns of A ‘False Breakout’
- Dojis Highlight Indecision Amongst Traders
USD/JPY continues to keep traders in suspense as it probes below 104.00 in intraday trade – warning of ‘false breakout’. A close of the current candle would be required to signal the bulls had lost their grip on the pair. However, the potential for a sustained correction may be limited given bearish reversal candlestick formations are lacking. Buyer’s interest would likely be renewed on a retest of the psychologically-significant 103.00 floor.
USD/JPY: Awaiting Close of Candle to Confirm ‘False Breakout’
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
A narrow trading band and a pair of Dojis on the four hour chart is indicative of indecision amongst traders. This suggests awaiting a more constructive set of signals before entering new positions may be prudent.
USD/JPY: Dojis Indicate Indecision As Trading Band Emerges
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.