Talking Points
- Strategy: Long, Target: 117.90, Stop: 115.90 (Daily Close)
- Dragonfly Doji On The Daily Suggests Indecision
- H4 Demonstrates Reluctance From The Bulls Near 116.80
USD/JPY’s intraday rebound has left a Dragonfly Doji in its path, suggesting some hesitation from traders. Yet the risks likely remain skewed to the upside given the absence of a more definitive reversal signal and a core uptrend. Buying interest remains at the 115.90 floor.
USD/JPY: Dragonfly Doji Suggests Indecision From Traders
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart paints a similar picture to the daily. A medley of Dojis on the intraday timeframe suggest a reluctance from the bulls to push the pair above the 116.80 barrier. Yet a lack of bearish reversal patterns casts doubt on a potential pullback over the session ahead.
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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