USD/JPY Harami Takes Shape At Critical 105.40 Barrier
- USD/JPY Technical Strategy: Shorts Preferred
- Harami CandlestickPattern Awaiting Confirmation
- Doji On H4Suggests Reluctance Near Intraday Support
USD/JPY is in the process of producing a Harami pattern near the critical 105.40 barrier. Critically, the key reversal pattern awaits confirmation from the close of the current candle and a successive up-day in order to be validated. Further, a sustained recovery may be challenging given the congestion between current levels and the recent peak at 110. In the alternate scenario a pullback below the 105.40 floor would open the next leg lower to 104.25.
USD/JPY: Harami Takes Shape In Intraday Trade
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
A Doji formation on the four hour chart suggests hesitation from traders near intraday support at 105.65. This does little to inspire confidence in the potential for a recovery over the session ahead. Sellers are likely to return at former support-turned-resistance.
USD/JPY: Doji Signals Reluctance At Nearby Support
Four Hour Chart - Created Using FXCM Marketscope 2.0,Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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