USD/JPY Hanging Man Awaits Confirmation To Warn Of A Correction
- USD/JPY Technical Strategy: Longs Preferred
- Reversal Signal Arises At Critical 108.00 Handle
- H4 Chart Suggests Bears’ Confidence Is Lacking
USD/JPY has flashed a warning sign of a potential pullback in the form of a Hanging Man candlestick. Critically, the key reversal pattern awaits validation from an ensuing down-session. Longs are preferred until confirmation and a close below the 108.00 hurdle is witnessed. This in turn would warn of a deeper correction to the 105.40 floor.
USD/JPY: Reversal Signal Emerges At 108.00 Handle
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
A Bearish Engulfing formation on the four chart offers another negative signal for traders. Yet thus far there has been limited follow-through from two successive Doji candlesticks. This suggests some reluctance from the bears to drag USD/JPY lower over the session ahead.
USD/JPY: Bearish Engulfing Pattern Met With Reluctance
Four Hour Chart - Created Using FXCM Marketscope 2.0,Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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