USD/JPY Shows Signs Of Exhaustion As Short Body Candles Endure
- USD/JPY Technical Strategy: Sidelines Preferred
- Hanging Man Awaits Confirmation To Warn Of A Pullback
- Daily Close Above 109.40 Needed To Open Ascent On 110.65
USD/JPY remains at critical juncture near the 109.00 handle as candlestick analysis suggests reluctance from the bulls to lead the pair higher. Further, a Hanging Man formation has been left in its wake. If confirmed by a successive down-day the key reversal pattern could herald a pullback. Yet a correction may be shallow in the context of a core uptrend on the daily. If the bulls can manage to firm their grip on prices a close above the 109.40 ceiling could open the next leg higher towards the August ’08 high at 110.65.
USD/JPY: Bulls Lose Steam Near 109.40 Ceiling
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart reveals the extent traders deliberation with USD/JPY. A parade of short body candles alongside a Doji demonstrates significant reluctance to push the pair higher. However the intraday timeframe is also devoid of reversal candlesticks, which casts some doubt on the potential for a correction over the session ahead.
USD/JPY: Endures Deliberation In Intraday Range
Four Hour Chart - Created Using FXCM Marketscope 2.0,Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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