USD/JPY Dark Cloud Cover Warns Of Deeper Correction Sub 108.00
- USD/JPY Technical Strategy: Shorts Preferred
- Dark Cloud Cover Warns Of Further Weakness
- Dojis On H4Suggests Some Reluctance Sub 108
USD/JPY’s slide under the 108.00 floor following a Dark Cloud Cover pattern warns of further weakness for the pair. Thus far the descent has proven slow with a string of several short body candles highlighting some hesitation from the bears to lead the pair lower. Yet with bullish candlesticks lacking a deeper correction to the 107.00 barrier may be on the cards.
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart highlights the extent of traders’ hesitation near the 108.00 handle. Yet with bullish patterns also lacking in intraday trade a recovery is questionable.
USD/JPY: Bulls Struggle To Regain Their Grip Sub 108.00
Four Hour Chart - Created Using FXCM Marketscope 2.0,Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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