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
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.