USD/JPY Downside Risks Remain While Hammer Awaits Confirmation

By DailyFx | August 11, 2014 AAA

DailyFX.com -

Talking Points

  • USD/JPY Technical Strategy: Shorts Preferred
  • Hammer Awaits Confirmation To Suggest Recovery
  • Focus Remains On Range-Bottom Near 101.00/20

USD/JPY’s recent Hammer formation on the daily may fail to yield a recovery for the pair with heavy congestion overhead. A jump over the 102.20 hurdle would be required to cast the immediate risk the upside, which would open the 102.77/103.00 range-top. However, at this stage the focus remains on the 101.00/20 floor.

USD/JPY: Hammer May Fail To Find Follow-Through

USD/JPY Downside Risks Remain While Hammer Awaits Confirmation

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

The four hour chart offered an early warning indication for USD/JPY’s intraday reversal. The Dragonfly Doji formation near 101.75 suggested a bounce to the psychologically-significant 102.00 handle. With a Harami pattern now in its wake there may be the potential for intraday weakness for the pair.

USD/JPY: Harami May Yield Intraday Weakness

USD/JPY Downside Risks Remain While Hammer Awaits 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.

You May Also Like

Related Forex Analysis
  1. USD again setting new highs - Nomura
    Forex News

    USD again setting new highs - Nomura

  2. USDJPY: Attempting to form bullish base - 2ndSkies
    Forex News

    USDJPY: Attempting to form bullish base - 2ndSkies

  3. USD/JPY bulls require a clearance of 118.20 - FXStreet
    Forex News

    USD/JPY bulls require a clearance of 118.20 - FXStreet

  4. Specs increase aggregate long USD to a new record high - TDS
    Forex News

    Specs increase aggregate long USD to a new record high - TDS

  5. Weekly Trading Forecast: Volatility Keeps Boiling in the FX Market
    Forex News

    Weekly Trading Forecast: Volatility Keeps Boiling in the FX Market

Trading Center