USD/JPY Eyes Push Past Its Peak With A Hanging Man Lacking Validation
- Strategy: Long > 115.90, Target: 117.90, Stop: 115.90 (Close)
- Focus Remains Higher With Hanging Man Lacking Validation
- Dojis Signal Enduring Tug-Of-War In Intraday Trade
USD/JPY continues to keep traders in suspense near its recent 115.90/116.00 peak as a Hanging Manawaits confirmation. A successive down-period would validate the signal and warn of a potential pullback. Yet within the context of a sustained uptrend, such a setback may prove only temporary. This leaves longs preferred with a breakout above the recent highs to potentially pave the way for an ascent on the October ’07 high near 117.90. A daily close below 114.60 would be required to warn of a top for the pair.
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
Tensions are running high in intraday trade, as evidenced by a string of Dojiformations on the four hour chart. Yet a lack of more definitive reversal signals suggests the bulls may be able to retain their grip on prices to lead the charge higher.
USD/JPY: Dojis Signal Enduring Tug-Of-War In Intraday Trade
Four Hour Chart - Created Using FXCM Marketscope 2.0,Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
Follow David on Twitter: @DaviddeFe
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.