USD/JPY Bearish Pattern Awaiting Confirmation Near Critical Support
- Strategy: Long, Target: 119.80, Stop: 117.80 (Daily Close)
- Shooting Star Awaiting Formation Near Key Support
- H4 Chart Offered An Early Warning Of An Intraday Dip
USD/JPY is in for a suspenseful session as a Shooting Star formation awaits confirmation near critical support. A daily close below the 117.90 mark may help validate the signal and herald a short-term dip. However, until received the risks likely remain skewed to the upside given the presence of a core uptrend. After achieving the 117.90 target offered in recent reports, the next focal point is the August ’07 high near 119.80.
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
A Shooting Star formation on the four hour chart offered an early warning of an intraday retreat for USD/JPY. Yet with intraday support nearby at 116.80 the extent of further declines are questionable. A bullish reversal signal would be taken as a long entry signal.
USD/JPY: Shooting Star Offered An Early Warning Of A Pullback
Four Hour Chart - Created Using FXCM Marketscope 2.0,Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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