USD/JPY Selling Pressure Remains Following Bearish Engulfing Pattern

By DailyFx | Updated July 30, 2014 AAA

DailyFX.com -

Talking Points

  • USD/JPY Technical Strategy: Shorts Preferred
  • Bearish Engulfing pattern suggests declines to continue
  • Range-bottom offers target of 101.20 for shorts

USD/JPY may be set to extend its recent declines following the formation of a Bearish Engulfing candlestick pattern near the range-top at 102.77. This may afford new short opportunities with an ultimate target offered by the range-bottom at 101.20. Interim buying support is likely to emerge at the psychologically-significant 102.00 handle.

USD/JPY: Bearish Engulfing Pattern Puts Pressure on USD/JPY

USD/JPY Selling Pressure Remains Following Bearish Engulfing Pattern

Daily Chart - Created Using FXCM Marketscope 2.0

An examination of the four hour chart reveals an absence of key reversal candlestick patterns, which casts doubt on the potential for an intraday recovery. Sellers would likely look to re-emerge at former support near 102.25, while further declines would likely see buyers return at 101.50.

USD/JPY: Close Below 102.25 Opens 101.50

USD/JPY Selling Pressure Remains Following Bearish Engulfing Pattern

Four Hour Chart - Created Using FXCM Marketscope 2.0

By David de Ferranti, Market 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

Related Forex Analysis
  1. Forex News

    USD/JPY climbs above 119.00 after jobless claims

  2. Forex News

    Dollar Rally Post-FOMC Bolstered by Surprise SNB Action

  3. Forex News

    FOMC plays a neat hand – SG

  4. Investing

    USD/JPY Breaks Out to the Upside

  5. Forex News

    Nikkei up, CNY down, as USD firms on Fed’s statement – TradeTheNews

Trading Center