USD/JPY Rebound From 106.80 Producing A Piercing Line Pattern
- USD/JPY Technical Strategy: Shorts Preferred
- Piercing Line Pattern Awaiting Confirmation
- Dojis On H4Suggests Some Reluctance Near 107
USD/JPY has found some buying interest renewed at the 106.80 mark as a Piercing Line candlestick pattern takes shape. Critically, the key reversal formation awaits the close of the current candle and a successive up-day to provide confirmation. In the alternate scenario a pullback below the 106.80 floor would open the next leg lower to 105.40
USD/JPY: Piercing Line Pattern Takes Shape
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
A Harami on the four hour chart is awaiting confirmation from an ensuing up-period to be confirmed. An intraday advance is likely to be met by renewed selling pressure at the nearby 107.50 ceiling.
USD/JPY: Bulls Return As Harami Awaits Confirmation
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.