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Talking Points

  • USD/JPY Technical Strategy: Longs Preferred
  • Intraday Pullback Warns of A ‘False Breakout’
  • H4 Chart Offered Early Indication of A Correction

USD/JPY may have witnessed a ‘false breakout’ if the current candle closes below the 104.00 barrier. However, the potential for a sustained correction may be limited given bearish reversal candlestick formations are lacking. Buyers interest would likely be renewed on a re-test of the psychologically-significant 103.00 floor.

USD/JPY: Awaiting Close of Candle to Confirm ‘False Breakout’

USD/JPY Intraday Pullback Warns Of 'False Breakout'

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

A Harami formation on the four hour timeframe offered an early indication of the potential for a slight pullback. Some intraday support at 103.67 may see the pair’s descent slowed over the coming sessin.

USD/JPY: Harami Warned Of An Intraday Correction

USD/JPY Intraday Pullback Warns Of 'False Breakout'

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

By David de Ferranti, Currency Analyst, DailyFX

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