USD/JPY Bears To Retain Control Sub 102.00

By DailyFx | June 13, 2014 AAA

DailyFX.com -

Talking Points

  • USD/JPY Technical Strategy: Shorts Preferred
  • Bearish Engulfing pattern suggests declines to continue
  • Range-bottom offers target of 101.20 for shorts

USD/JPY may be set to extend its recent declines following the formation of a Bearish Engulfing candlestick pattern near the range-top at 102.77. However, new short entries may not be ideal at current levels, given support rests nearby at 101.20.

USD/JPY: Bearish Engulfing Pattern Puts Pressure on USD/JPY

USD/JPY Bears To Retain Control Sub 102.00

Daily Chart - Created Using FXCM Marketscope 2.0

An examination of the four hour chart reveals a Piercing Line pattern which helped indicate an intraday bounce for the pair. However, a further recovery may be a stretch with the psychologically-significant 102.00 handle hanging nearby.

USD/JPY: Recovery Post Piercing Line Limited By Nearby Resistance

USD/JPY Bears To Retain Control Sub 102.00

Four Hour Chart - Created Using FXCM Marketscope 2.0

By David de Ferranti, Market Analyst, DailyFX

Follow David on Twitter: @Davidde

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Learn how to read candlesticks to help identify trading opportunities with the DailyFX Candlesticks Video Course.

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