- USD/JPY Technical Strategy: Pending Long
- Bulls Losing Steam Near 104.00 Ceiling
- Correction Doubtful With Reversal Signals Lacking
USD/JPY’s rapid ascent has lost momentum near the critical 104.00 barrier. While some profit-taking may yield a slight corrective pullback, the absence of key reversal patterns keeps the near-term risk higher. A daily close above the nearby hurdle would likely set the scene for a run on the late January highs near 104.85.
USD/JPY: Bulls Losing Steam On Test Of Key Hurdle
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart should be closely monitored for early indications of a possible intraday pullback. A Hanging Man is emerging, yet awaits confirmation from a close of the current candle and successive down-period to be confirmed. A retreat is likely to be met by buying support at the psychologically-significant 103.00 handle.
Four Hour Chart - Created Using FXCM Marketscope 2.0,Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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