USD/JPY Doji Denotes Hesitation On Journey Towards Range-Top

By DailyFx | August 15, 2014 AAA

DailyFX.com -

Talking Points

  • USD/JPY Technical Strategy: Longs Preferred
  • Doji Suggests Indecision, Yet Bearish Patterns Absent
  • Daily Close Above The 102.20 Hurdle Opens 103.00

USD/JPY may continue its drift towards the 103.00 range-top in the absence of key reversal candlesticks.

A Doji on the daily denotes some hesitation from the bulls, yet is insufficient to suggest a turning point at this stage. However, if a bearish candlestick emerges near the critical resistance zone, it would provide a fresh opportunity to play the ongoing range.

USD/JPY: Hammer Formation Puts Range-Top In Sight

USD/JPY Doji Denotes Hesitation On Journey Towards Range-Top

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

The four hour chart should be closely monitored for early warning signs of a reversal for USD/JPY near the 102.75 to 103.00 congestion zone. Yet with a Bullish Engulfing formation in its wake the immediate risk remains to the upside for now.

USD/JPY: Awaiting Reversal Signal On Retest of 103.00

USD/JPY Doji Denotes Hesitation On Journey Towards Range-Top

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

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Learn how to read candlesticks to help identify trading opportunities with the DailyFX Candlesticks Video Course.

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