USD/JPY Thrusters May Reignite With Reversal Candlesticks Lacking
- USD/JPY Technical Strategy: Pending Long
- Bulls Cautiously Return Following Lack Of Reversal Signals
- Daily Close Above 109.40 May Open Advance On 110.65
USD/JPY’s thrusters appear to be faltering as a short body session suggests the bulls are lacking inspiration near the 109.40 barrier. Yet an ascent towards the August ’08 high at 110.65 may still be achievable with key reversal candlesticks lacking.
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
A Bearish Engulfing formation near the 110.00 ceiling indicated the bulls were relinquishing their grip on prices in intraday trade. While upside momentum appears to be fading the potential for a correction is questionable given the lack of follow-through to the candlestick pattern.
USD/JPY: Bearish Engulfing Candlestick Pattern Signaled Fading Upside Momentum
Four Hour Chart - Created Using FXCM Marketscope 2.0,Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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