USD/JPY Stuck In Congestion Zone As Dojis Highlight Trader Indecision

By DailyFx | August 06, 2014 AAA

DailyFX.com -

Talking Points

  • USD/JPY Technical Strategy: Pending Short
  • Dojis Demonstrate Indecision From Traders
  • Failure To Breach 103.00 Casts Doubt On Gains

USD/JPY may continue its consolidation with several successive Doji formations denoting indecision from traders. The pair remains in a congestion zone with sellers sitting nearby at 102.77/103.00 and support resting at the 102.20 floor. A break of either region would be required to offer a clearer directional bias.

USD/JPY: Dojis Highlight Hesitation Near Key Technical Levels

USD/JPY Stuck In Congestion Zone As Dojis Highlight Trader Indecision

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

The four hour chart offered an early warning sign of USD/JPY’s intraday reversal. The Shooting Star formation near 102.75 suggested a retracement to nearby support at 102.40. However, with bullish signals seemingly absent, a recovery over the session ahead is questionable.

USD/JPY: Searching For Direction With Bullish Patterns Absent

USD/JPY Stuck In Congestion Zone As Dojis Highlight Trader Indecision

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.

You May Also Like

COMPANIES IN THIS ARTICLE
Related Forex Analysis
  1. Forex News

    USD/JPY extends beyond 119.50

  2. Forex News

    Broad USD strength drives Asia, ZEW eyed amid data-thin EUR calendar

  3. Forex News

    USD/JPY rejected at 119.50

  4. Forex News

    USD/JPY Candlestick Analysis: A Top in Place Below 122.00?

  5. Forex News

    USD/JPY on the bid in Tokyo on 119 handle

Trading Center