USD/JPY Bearish Engulfing Pattern Warns Of Weakness
- USD/JPY Technical Strategy: Sidelines Preferred
- Bearish Engulfing Pattern Finds Confirmation
- Close Below 108.00 Floor May Open 107.00
USD/JPY is at a critical juncture as the confirmation of a Bearish Engulfing formation warns of a deeper setback for the pair. A close under the 108.00 floor would be required to open the next leg lower to the 107.00 barrier.
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart paints a less discouraging picture for the pair. A Harami candlestick pattern offered an early indication of an intraday rebound. While a Doji suggests some waning momentum a correction over the session ahead is made questionable by an absence of key reversal signals.
USD/JPY: Harami Heralded Intraday Rebound
Four Hour Chart - Created Using FXCM Marketscope 2.0,Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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