Talking Points
- USD/JPY Technical Strategy: Pending Long
- Gravestone Doji Takes Shape As Upside Momentum Fades
- Dark Cloud Cover On H4 Timeframe Offered An Early Warning
USD/JPYis struggling to sustain its upside momentum as a Gravestone Doji takes shape on the daily. While a sign of indecision from traders the candlestick pattern is not considered a key reversal formation. This in turn casts some doubt over the potential for a sustained correction from the pair. Against the backdrop of a sustained uptrend buying dips is preferred.
USD/JPY: Gravestone Doji Rising Near 2014 Highs
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 Dark Cloud Cover formation near 105.65 signaled a shift in sentiment during the session. Buying interest is likely to be renewed at the psychologically-significant 105.00 handle.
USD/JPY: Key Reversal Pattern Emerges In Intraday Trade
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.
