USD/JPY Short Body Candles Suggest Caution Persists Near 107.00
- USD/JPY Technical Strategy: Sidelines Preferred
- Short Body Candles Highlight Hesitation Near 107.00
- H4 Chart Candlestick Formations Indicate Indecision
USD/JPY’s medley of short body candles and a Doji formation suggests a lack of conviction from traders as hovers near the 107.00 handle. As noted in recent reports a clean ascent from 105.40 was likely to prove challenging, given the congestion between current levels and the recent peak at 110. This leaves a clearer directional bias desired before adopting fresh positioning.
USD/JPY: Recovery Stumbles As A Doji Denotes Reluctance From The Bulls
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart tells a similar story to the daily with a parade of short-body candles highlighting hesitation from traders near 107.50. Yet an absence of key reversal patterns near the ceiling casts doubt on a potential correction over the session ahead.
USD/JPY: Dojis Indicate Indecision Near Intraday Ceiling
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.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.