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

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.

You May Also Like

COMPANIES IN THIS ARTICLE
Related Forex Analysis
  1. Forex News

    A Fundamental Push for Key EURUSD, GBPUSD and USDJPY Levels?

  2. Forex News

    EURUSD and GBPUSD Will Decide Make-or-Break In Holiday Trading Conditions

  3. Forex News

    USDJPY Stands at 2015 High With Fed and BoJ Policy in the Forefront

  4. Forex News

    USD/JPY: A bullish scenario on 121 handle - UOB

  5. Forex News

    USD/JPY bulls looking for a break away

Trading Center