- 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
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
Four Hour Chart - Created Using FXCM Marketscope 2.0,Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
Follow David on Twitter: @Davidde
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.