USD/JPY Bulls Lose Conviction As A Doji Highlights Hesitation Near 109
- USD/JPY Technical Strategy: Sidelines Preferred
- Absence of Bearish Candlesticks Casts Doubt On A Correction
- Daily Close Above 109.40 Needed To Open Ascent On 110.65
USD/JPYappears to have run out of steam near the 109 handle as a Doji highlights hesitation by the bulls to lead the pair higher. Yet amid a void of classic reversal patterns a correction is questionable. A daily close above the 109.40 mark could open the next leg higher towards the August ’08 high at 110.65.
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart may be offering an early warning of a potential pullback. An Evening Star formation has received confirmation and suggests a possible retreat for the pair to intraday buying support at 108.33. Yet given the context afforded by the daily, a further correction may be limited.
USD/JPY: Evening Star Warns Of Intraday Dip
Four Hour Chart - Created Using FXCM Marketscope 2.0,Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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