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Talking Points

  • USD/JPY Technical Strategy: Pending Long
  • Bulls Lose Steam Near 104.00 Ceiling
  • H4 Chart Offers Warning Of A Pullback

USD/JPY remains at a critical juncture near the 104.00 ceiling with an absence of key reversal patterns casting some doubt over a possible correction. A daily close above the nearby hurdle would likely set the scene for a run on the late January highs near 104.85.

USD/JPY: Bulls Lose Steam On Test Of Key Hurdle

USD/JPY At A Critical Juncture Near 104.00 With Bearish Signals Lacking

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

A Bearish Engulfing formation on the four hour chart may offer an advance warning of a pullback if confirmed by a successive down-period. A crawl under the nearby 103.67 floor could set the scene for an extended decline toward the former range-top at 103.00.

USD/JPY: Bearish Signal Awaiting Confirmation Near Critical Level

USD/JPY At A Critical Juncture Near 104.00 With Bearish Signals Lacking

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

By David de Ferranti, Currency Analyst, DailyFX

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