USD/JPY Pullback Sees Bearish Pattern Take Shape
- Strategy: Long, Target: 117.90, Stop: 115.90 (Daily Close)
- Bearish Engulfing Pattern Taking Shape On The Daily
- Four Hour Chart Flashed An Early Weakness Warning
USD/JPY is in the process of producing a Bearish Engulfing formation. Confirmation from the close of the current candle and a successive down-session would be required to warn of a further correction for the pair. Yet within the context of a core uptrend, pullbacks may prove shallow.
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
A Bearish Engulfing pattern on the four hour chart offered an early warning of weakness for USD/JPY. A lack of bullish signals in intraday trade casts the risks towards buying interest at the 115.00 handle.
USD/JPY: Bearish Engulfing Formation Offered An Early Warning
Four Hour Chart - Created Using FXCM Marketscope 2.0,Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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