USD/JPY Pullback Leaves Bearish Pattern Awaiting Confirmation
- Strategy: Flat
- Bearish Reversal Signal Awaiting Confirmation
- Bullish Patterns Lacking In Intraday Trade
USD/JPY’s retracement has produced a key reversal pattern which awaits confirmation from a successive down-period. If received, the Bearish Engulfing formation may herald a pullback towards the 1.1238 mark. Yet the scope for further follow-through is questionable amid the presence of a more pronounced medium-term uptrend.
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart reveals some reluctance from the bears to drag USD/JPY. This is indicated by a string of short-body and Doji candlesticks. Yet in the absence of more definitive bullish reversal signals a recovery is questionable.
USD/JPY: Lacking Bullish Reversal Signals In Intraday Trade
Four Hour Chart - Created Using FXCM Marketscope 2.0,Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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