USD/JPY Continued Consolidation Leaves Cues From Candlesticks Lacking
- USD/JPY Technical Strategy: Sidelines Preferred
- Hanging Man Candlestick Fails To Find Follow-Through
- Daily Close Above 109.40 Needed To Open 110.65
USD/JPYcontinues its consolidation around the 109.00 level after a Hanging Man failed to inspire the bears to drag the pair below 108.50. A daily close below the nearby level of buying support would be required to herald a deeper correction to the psychologically-significant 107.00 handle. In the alternative scenario if the bulls can manage to firm their grip on prices and catalyze a close above the 109.40 ceiling it could open the next leg higher towards the August ’08 high at 110.65.
USD/JPY: Consolidation Leaves Directional Cues Lacking
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart reveals the extent of the narrow range that has contained USD/JPY over the past week. While intraday price action has yielded a series of reversal formations, they have failed to generate much traction in one direction. This leaves a breakout the pair awaiting a breakout to offer a clearer directional bias.
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
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.