DailyFX.com -

Talking Points

  • USD/JPY Technical Strategy: Longs Preferred
  • Breakout Leaves Void Of Bearish Patterns
  • H4 Chart Offered Intraday Correction Warning

USD/JPY has finally cleared the critical 104.00 barrier with a void of bearish signals suggesting the potential for further gains. This leaves the spotlight on the Mid-January highs near 104.85. A daily close below 104.00 would signal a false breakout and warn of a more sustained correction for the pair.

USD/JPY: Climbs Over 104.00 Barrier With Bearish Patterns Lacking

USD/JPY Breaks Above 104.00 Hurdle With Reversal Patterns Missing

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

A Harami formation on the four hour timeframe offered an early indication of the potential for a slight pullback. However, with strong buying support likely sitting around the 104.00 handle the extent of further declines may be limited.

USD/JPY: Harami Warned Of An Intraday Correction

USD/JPY Breaks Above 104.00 Hurdle With Reversal Patterns Missing

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.

Related Articles
  1. Investing News

    China’s Forex Reserves Dropped Significantly

    China’s forex​ reserves dropped by a record $93.9 billion at the end of August to $3.56 trillion because the Central Bank has been selling dollars to provide a cushion to the falling yuan​
  2. Forex

    The Pros and Cons of a Fully Convertible Rupee

    Amid the rising economic power of India, the talks of making the Indian currency fully convertible are gaining momentum. We look at the pros and cons.
  3. Forex Fundamentals

    Chinese Yuan an Unlikely Reserve Currency

    As the world's second largest economy, China's challenge to America’s dominance includes a push to make the yuan (RMB), the world’s reserve currency. Whether it can do that now is unclear.
  4. Economics

    How Currency Enforcement Helped Sink The Trans-Pacific Partnership (TTP)

    One particular barrier to trade that has received much attention of late and caused delays in negotiations of the TPP is exchange-rate manipulation, by which a country artificially devalues its ...
  5. Forex

    Top U.S Forex News Sites

    Breaking news moves forex markets. Here are the top U.S. sites for tracking forex news.
  6. Investing

    Financial News Comparison: Bloomberg Vs. Reuters

    Access to financial information has grown with the expansion of digital news. Bloomberg and Thomson Reuters lead the pack, claiming a majority of the business information market.
  7. Economics

    Who Benefits From South Korea's Lowered Interest Rates?

    South Korea is the latest country to cut interest rates in an attempt to stimulate economic growth.
  8. Forex Education

    The Top Uses For P2P Currency Exchange

    Peer-to-peer (P2P) currency exchange networks offer a viable and cheaper alternative for buying and selling currencies.
  9. Forex

    Steps To Open An Offshore Forex Account

    Here is a simple breakdown of how to open an offshore forex account for US-based users, including legal requirements.
  10. Entrepreneurship

    Top Forex Trading Apps

    A brief overview of the top apps that help forex traders with on time information, charts and more.

You May Also Like

Trading Center
You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!