USD/JPY Ensemble of Dojis Highlights Hesitation From Traders
- USD/JPY Technical Strategy: Sidelines Preferred
- Daily Close Below 104.00 Suggests A ‘False Breakout’
- Parade of Dojis Highlight Indecision Amongst Traders
USD/JPY remains in a vulnerable position after closing below the 104.00 barrier amongst signs of hesitation amongst traders denoted by a Dojicandlestick. This could leave the pair primed for a push towards the 103.00 floor. However the prospect of a more severe correction is questionable in the absence of classic bearish reversal signals.
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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