USD/JPY Consolidates As Bearish Pattern Fails To Find Confirmation

By DailyFx | August 05, 2014 AAA

DailyFX.com -

Talking Points

  • USD/JPY Technical Strategy: Pending Short
  • Failure To Breach 103.00 Casts Doubt On Gains
  • Evening Star Sees Little Follow-Through

USD/JPY’s pullback has yielded an Evening Star formation which had warned of a potential correction for the pair. However, the absence of a successive down-day does little to confirm the bearish reversal pattern. Given nearby 102.77/103.00 zone of selling pressure overhead the pair may struggle to recover ground, which suggests a consolidative period ahead.

USD/JPY: Evening Star Warns Of Correction

USD/JPY Consolidates As Bearish Pattern Fails To Find Confirmation

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

The four hour chart reveals few major reversal patterns over the most recent trading session which does little to offer a clear directional bias. A break of the nearby 102.40 floor would be required to open the next definitive level near 101.75.

USD/JPY: Searching For Direction With Reversal Patterns Absent

USD/JPY Consolidates As Bearish Pattern Fails To Find Confirmation

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.

comments powered by Disqus
Related Forex Analysis
  1. NZD/USD Rebounds After Piercing Line Pattern Offered Bullish Signal
    Forex News

    NZD/USD Rebounds After Piercing Line Pattern Offered Bullish Signal

  2. GBP/USD Recovery May Lack Fuel Amid Void Of Reversal Signals
    Forex News

    GBP/USD Recovery May Lack Fuel Amid Void Of Reversal Signals

  3. EUR/USD Descent Stalls As A Doji Candlestick Highlights Hesitation
    Forex News

    EUR/USD Descent Stalls As A Doji Candlestick Highlights Hesitation

  4. USD/JPY recovered from Asian lows at 108.55, but still under pressure
    Forex News

    USD/JPY recovered from Asian lows at 108.55, but still under pressure

  5. AUD/USD Rebounds After Dragonfly Doji Denoted Indecision At 2014 Low
    Forex News

    AUD/USD Rebounds After Dragonfly Doji Denoted Indecision At 2014 Low

Trading Center