DailyFX.com -

Talking Points

  • 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

USD/JPY Hits Its Next Hurdle With Key Reversal Signals Lacking

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.

USD/JPY:

USD/JPY Hits Its Next Hurdle With Key Reversal Signals Lacking

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

COMPANIES IN THIS ARTICLE
Related Forex Analysis
  1. Forex News

    Video: AUDUSD, GBPUSD and USDJPY Better Trade Options Than EURUSD

  2. Forex News

    Global Equity Markets Look Unsettled, China Is Tumbling

  3. Forex News

    USD/JPY supported at 122.60

  4. Forex News

    USD/JPY drops to 122.60

  5. Forex News

    USD/JPY: Will Yen find love on safe haven appeal?

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!