USD/JPY At A Crossroads Near 108.00 With A Bearish Pattern In Its Wake
- USD/JPY Technical Strategy: Sidelines Preferred
- Dark Cloud Cover Receives Confirmation
- Close Below 108.00 Floor May Open 107.00
USD/JPY continues to keep traders in suspense near the 108.00 hurdle as a Dark Cloud Cover pattern warns of weakness. A close under the 108.00 floor may herald a deeper correction to the 107.00. 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
Intraday action paints a divergent picture to the daily as a Piercing Line pattern on the four hour chart offers a source of hope for the USD/JPY bulls. The reversal signal has received confirmation from a successive up period, which may be the precursor to a continued intraday advance.
USD/JPY: Piercing Line Pattern Emerges Near Critical 108.00 Barrier
Four Hour Chart - Created Using FXCM Marketscope 2.0,Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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