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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

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