USD/JPY Doji Denotes Indecision As Suspenseful Trade Near 108 Endures
- USD/JPY Technical Strategy: Sidelines Preferred
- Doji Suggests Some Reluctance Near 108.00
- Close Below 108.00 Floor May Open 107.00
USD/JPY is at a critical juncture as the pair probes below the 108.00 floor. Yet hesitation amongst traders at the critical barrier is made evident by a Doji in recent trade. A close under the 108.00 floor would potentially herald a deeper correction to the 107.00 mark.
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart reveals a disdain from traders towards several recent reversal patterns including a Piercing Line and Morning Star formation. This suggests the threshold to reinvigorate the bulls may be high, and casts some doubt over a potential recovery. Some intraday buying interest is evident near 108.00, below which may see some support renewed at 107.40.
USD/JPY: Disdain For Bullish Patterns 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.