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.
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
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