USD/JPY Clings To 107.00 As Dojis Highlight Hesitation From Traders
- USD/JPY Technical Strategy: Longs Preferred
- Doji Suggests Some Indecision, Yet Reversal Signals Absent
- Daily Close Above 107.00 May Open Grind Towards 108.00
The USD/JPYbulls have seemingly lost confidence as indicated by a medley of Doji formations and short body candles. Yet in the absence of clear reversal signals there remains the potential for a journey higher to resume. The daily close above the 107 hurdle may set the pair up for a grind towards the next psychologically-significant ceiling at 108.00.
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart reveals a congestion zone has formed between 107.00 and 107.40. A parade of short body periods and Doji candlesticks highlights hesitation amongst traders. Yet the bulls appear unprepared to relinquish their grip on prices amid a void of bearish reversal signals. This leaves the pair awaiting a break above 107.40 to open the next leg higher.
USD/JPY: Awaiting Breakout As Congestion Continues
Four Hour Chart - Created Using FXCM Marketscope 2.0,Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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