USD/JPY Dark Cloud Cover Awaits Confirmation To Suggest A Correction
- USD/JPY Technical Strategy: Sidelines Preferred
- Dark Cloud Cover Pattern Awaits Confirmation
- Close Below 108.00 Floor May Open 107.00
USD/JPY remains trapped within a narrow trading band as a Dark Cloud Cover pattern awaits confirmation. If confirmed by a successive down day and a close under the 108.00 floor a deeper correction to the 107.00 floor may ensue. However, some skepticism over a continued pullback may be warranted – given recent reversal signals have been met with some disdain by traders.
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart reveals an absence of bullish reversal formations. Alongside the context afforded by the daily, this casts some doubt on the potential for a recovery over the session ahead. Buying interest may be renewed at the pair’s recent lows near 108.00.
USD/JPY: Absence Of Bullish Signals Casts Doubt On A Recovery
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.