USD/JPY Bears Hesitate Near Key Support As A Doji Forms On The Daily

By DailyFx | July 11, 2014 AAA

DailyFX.com -

Talking Points

  • USD/JPY Technical Strategy: Pending Long
  • Haramidelivers declines to range-bottom at 101.20
  • Awaiting key reversal pattern to signal a recovery

USD/JPY has extended recent declines on the on the back of a Harami pattern on the daily which suggested the bears were looking to take control of prices. However, the candlestick formation may fail to find further follow-through given the long-held range-bottom rests nearby at 101.20. A Doji appears to be forming on the daily in intraday trade, however the candlestick is insufficient to suggest a bullish reversal at this point.

USD/JPY: Awaiting Reversal Signals Near Range-Bottom

USD/JPY Bears Hesitate Near Key Support As A Doji Forms On The Daily

Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here

Scrutinizing the four hour chart; a Piercing Line formation suggests the bulls are not yet prepared to relinquish their grip on prices. However, the extent of a recovery may be limited by overhanging resistance at the 101.45 mark.

USD/JPY: Piercing Line Pattern Demonstrates Resilience By The Bulls

USD/JPY Bears Hesitate Near Key Support As A Doji Forms On The Daily

Four Hour Chart - Created Using FXCM Marketscope 2.0,Volume Indicator Available Here

By David de Ferranti, Currency Analyst, DailyFX

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