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Talking Points

  • USD/JPY Technical Strategy: Longs Preferred
  • Hammer Candlestick Formation Offers Bullish Signal
  • Daily Close Above The 102.20 Hurdle Opens 103.00

USD/JPY continues its journey towards the 103.00 ceiling with a Hammer formation in its wake. At this stage an absence of reversal signals leaves the bias skewed to the upside. However, if a bearish candlestick emerges near the critical resistance zone, it would provide a fresh opportunity to play the ongoing range.

USD/JPY: Hammer Formation Puts Range-Top In Sight

USD/JPY Range-Top In Focus Post Hammer Candlestick Formation

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

The four hour chart should be closely monitored for early warning signs of a reversal for USD/JPY near the range-top. A Shooting Star formation is on the radar, yet awaits confirmation from a successive down-period. Buying interest is likely to remain while the pair holds above the 102.40 mark.

USD/JPY: Piercing Line Offered Intraday Reversal Signal

USD/JPY Range-Top In Focus Post Hammer Candlestick Formation

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

By David de Ferranti, Currency Analyst, DailyFX

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