- USD/JPY Technical Strategy: Shorts Preferred
- Bearish Engulfing pattern suggests declines to continue
- Range-bottom offers target of 101.20 for shorts
USD/JPY may be set to extend its recent declines following the formation of a Bearish Engulfing candlestick pattern near the range-top at 102.77. This may afford new short opportunities with an ultimate target offered by the range-bottom at 101.20. Interim buying support is likely to emerge at the psychologically-significant 102.00 handle.
USD/JPY: Bearish Engulfing Pattern Emerges Near Key Resistance
Daily Chart - Created Using FXCM Marketscope 2.0
An examination of the four hour chart reveals a Hammer formation near intraday support at 102.25. However, the bullish signal may find little follow-through, given noteworthy selling pressure likely hangs overhead at 102.75.
USD/JPY: Hammer Awaits Confirmation Near Support
Four Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, DailyFX
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