DailyFX.com -

Talking Points

  • USD/JPY Technical Strategy: Pending Short
  • Doji Suggests Indecision, Yet Bearish Patterns Absent
  • Daily Close Below 102.20 Needed To Open Range-Bottom

USD/JPY remains a critical juncture near its range-top with signs of indecision made evident by a Doji formation on the daily. While not considered a key reversal pattern, the candlestick suggests hesitation from the bulls to lead the currency higher which may be indicative of a small top. A retreat below the 102.20 floor would be required to open the range-bottom at 101.20.

USD/JPY: Bulls In Doubt As Doji Emerges On The Daily

USD/JPY At A Crossroads As A Doji Suggests Doubt Amongst The Bulls

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

The four hour chart has been littered with key reversal candlestick patterns. Yet few have found lasting follow-through. This casts some doubt on the potential for a Hammer formation in intraday trade to lead a sustained advance for the pair. A retest of the 102.75 ceiling and emergence of a bearish formation could offer a new opportunity for short positions.

USD/JPY: Awaiting Reversal Signal On Retest of 102.75/103.00

USD/JPY At A Crossroads As A Doji Suggests Doubt Amongst The Bulls

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.

You May Also Like

COMPANIES IN THIS ARTICLE
Related Forex Analysis
  1. Forex News

    A Fundamental Push for Key EURUSD, GBPUSD and USDJPY Levels?

  2. Forex News

    EURUSD and GBPUSD Will Decide Make-or-Break In Holiday Trading Conditions

  3. Forex News

    USDJPY Stands at 2015 High With Fed and BoJ Policy in the Forefront

  4. Forex News

    USD/JPY: A bullish scenario on 121 handle - UOB

  5. Forex News

    USD/JPY bulls looking for a break away

Trading Center