USD/JPY Evening Star Near 103.00 Offers Ominous Warning

By DailyFx | August 04, 2014 AAA

DailyFX.com -

Talking Points

  • USD/JPY Technical Strategy: Pending Short
  • Failure To Breach 103.00 Casts Doubt On Gains
  • Evening Star Warns Of Drop To 102.20

USD/JPY’s pullback has yielded an Evening Star formation which may be the precursor to a further correction. Confirmation of the bearish reversal pattern from a successive down-day would suggest a retreat to the nearby floor at 102.20. A daily close above the 103.00 handle would be required to invalidate a bearish bias.

USD/JPY: Evening Star Warns Of Correction

USD/JPY Evening Star Near 103.00 Offers Ominous Warning

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

The four hour chart reveals a Harami pattern in intraday trade, which has generated an intraday bounce for USD/JPY. However, given the proximity to nearby selling pressure around 102.75/103.00 further gains may be limited. The emergence of a bearish reversal pattern would be taken as an opportunity to sell the pair with the immediate downside target of 102.25.

USD/JPY: Harami May Find Limited Follow-Through

USD/JPY Evening Star Near 103.00 Offers Ominous Warning

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. Forex News

    USD/JPY climbs higher, eyes 120 levels

  2. Forex News

    Credit Suisse: Expect USD/JPY to target 119.90 levels - eFXnews

  3. Forex News

    USD/JPY hits fresh daily high

  4. Forex News

    USD/JPY Technical Analysis: Trying to Expose 120.00 Level

  5. Forex News

    USD/JPY at last week’s highs looking better bid

Trading Center