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Talking Points

  • USD/JPY Technical Strategy: Pending Long
  • Shooting Star Awaiting Confirmation Near 2014 Highs
  • Doji on H4 Highlighted Hesitation Amongst Traders

USD/JPY’s recent rocket higher is at risk of losing fuel as a Shooting Star begins to take shape on the daily. If confirmed by the close of the current candle and a successive down period the bearish candlestick may be the precursor to a further correction. However, against the backdrop of a short-term uptrend buying dips would be preferred.

USD/JPY: Shooting Star Takes Shape Following Failure To Crack 105.40

USD/JPY Loses Steam Near 2014 High As Shooting Star Takes Shape

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

The four hour chart offered an early indication that USD/JPY’s upside momentum was fading. A Doji formation near 105.28 signaled hesitation from the bulls. Yet classic reversal signals appear lacking at this stage. A continued retreat is likely to find buying interest renewed near intraday support at 104.42.

USD/JPY: Doji Highlighted Hesitation Near 105.28 Barrier

USD/JPY Loses Steam Near 2014 High As Shooting Star Takes Shape

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

By David de Ferranti, Currency Analyst, DailyFX

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