USD/JPY Hits Selling Pressure At 103.00 Yet Reversal Patterns Lacking

By DailyFx | July 31, 2014 AAA

DailyFX.com -

Talking Points

  • USD/JPY Technical Strategy: Sidelines Preferred
  • Failure To Breach 103.00 Casts Doubt On Gains
  • Awaiting Bearish Patterns To Signal A Reversal

USD/JPY has continued its ascent following a Harami pattern on the daily with the pair testing key resistance near 103.00 in recent trading. The failure to breach the psychologically-significant barrier casts some doubt on further gains. However, an absence of bearish patterns also makes a reversal questionable. This leaves the sidelines preferred until a more constructive setup presents itself.

USD/JPY: Hits Selling Pressure Yet Reversal Signals Lacking

USD/JPY Hits Selling Pressure At 103.00 Yet Reversal Patterns Lacking

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

The four hour chart reveals a similar narrative as the daily. A Harami pattern has failed to find follow-through which has left a void of reversal patterns. Several Doji formations indicate noteworthy indecision amongst traders near the 103.00 handle.

USD/JPY: Dojis Suggest Bulls Lose Steam Near 103.00 Handle

USD/JPY Hits Selling Pressure At 103.00 Yet Reversal Patterns 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.

comments powered by Disqus
Related Forex Analysis
  1. GBP/USD upside remains corrective – Commerzbank
    Forex News

    GBP/USD upside remains corrective – Commerzbank

  2. USD/CHF shows recovery attempts, as it bottomed at 0.9340
    Forex News

    USD/CHF shows recovery attempts, as it bottomed at 0.9340

  3. USD/JPY Daily Outlook - September 19
    Investing

    USD/JPY Daily Outlook - September 19

  4. SEB:  More EUR/USD buying seen above 1.2943 - eFXnews
    Forex News

    SEB: More EUR/USD buying seen above 1.2943 - eFXnews

  5. USD/CAD at Risk for Larger Downside Correction on Sticky Canada CPI
    Forex News

    USD/CAD at Risk for Larger Downside Correction on Sticky Canada CPI

Trading Center