Skip to content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
USD/JPY Candlestick Analysis: Confirmation of Direction Sought

USD/JPY Candlestick Analysis: Confirmation of Direction Sought

Ilya Spivak, Head Strategist, APAC

To receive Ilya's analysis directly via email, please SIGN UP HERE

Talking Points:

  • USD/JPY Strategy: Flat
  • Candle Setup, RSI Divergence Warn of Drop
  • Triangle Breakout Sought as Confirmation

The US Dollar continues to stall against the Japanese Yen but a bearish Dark Cloud Cover candle pattern hint a turn lower may be in the cards. Such a move would validate our expectations of a pullback in the first quarter. The outlines of a descending triangle and negative RSI divergence bolster the case for a downside scenario.

A break below Triangle floor support at 117.43 exposes the December low at 115.55, followed by the 38.2% Fibonacci retracement at 113.78. Alternatively, a move above Triangle top resistance at 119.22 targets the 23.6% Fib expansion at 120.53. We will await confirmation from the sidelines for now until the Triangle pattern resolves itself.

Add these technical levels directly to your charts with our Support/Resistance Wizard app!

Weekly Chart - Created Using FXCM Marketscope

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES