USD/JPY Loses Steam Near 2014 High As Shooting Star Takes Shape
- USD/JPY Technical Strategy: Pending Long
- Shooting Star Awaiting Confirmation Near 2014 Highs
- Doji on H4 Highlighted Hesitation Amongst Traders
USD/JPY’s recent rocket higher is at risk of losing fuel as a Shooting Star begins to take shape on the daily. If confirmed by the close of the current candle and a successive down period the bearish candlestick may be the precursor to a further correction. However, against the backdrop of a short-term uptrend buying dips would be preferred.
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart offered an early indication that USD/JPY’s upside momentum was fading. A Doji formation near 105.28 signaled hesitation from the bulls. Yet classic reversal signals appear lacking at this stage. A continued retreat is likely to find buying interest renewed near intraday support at 104.42.
USD/JPY: Doji Highlighted Hesitation Near 105.28 Barrier
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.