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USD/JPY Probing Above 104 As Bullish Engulfing Formation Emerges

USD/JPY Probing Above 104 As Bullish Engulfing Formation Emerges

David de Ferranti, Currency Analyst

Talking Points

  • USD/JPY Technical Strategy: Sidelines Preferred
  • Bullish Engulfing Formation Hints At Further Gains
  • Dojis on H4 Highlight Indecision Amongst Traders

USD/JPY has been offered a hint at further gains in the form of a Bullish Engulfing candlestick pattern. If confirmed by a successive up-day the formation could herald a grind towards the 104.85 ceiling. However, some skepticism is warranted given the recent whipsawing around the psychologically-significant 104.00 handle by the pair.

USD/JPY: Bullish Engulfing Formation Awaiting Confirmation

USD/JPY Probing Above 104 As Bullish Engulfing Formation Emerges

Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here

The four hour chart hardly inspires confidence in the potential for USD/JPY to continue its ascent. Several short-body candles near its recent highs are indicative of indecision from traders. This suggests it may be prudent to keep an eye out for bearish reversal signals which could hint at an intraday correction.

USD/JPY: Dojis Indicate Indecision As Trading Band Emerges

USD/JPY Probing Above 104 As Bullish Engulfing Formation 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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