USD/JPY Loses Steam With Dojis Indicating Indecision
- USD/JPY Technical Strategy: Sidelines Preferred
- Daily Close Below 104.00 Suggests A ‘False Breakout’
- Parade of Dojis Highlight Indecision Amongst Traders
The USD/JPY bulls have seemingly lost their grip on the pair after a Doji signaled hesitation from traders near 104.00. The daily close below the critical barrier warns of further weakness and may set the scene for a retest of the 103.00 floor.
USD/JPY: Daily Close Confirms ‘False Breakout’
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
A narrow trading band and parade 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
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