Talking Points
- USD/JPY Technical Strategy: Longs Preferred
- Doji Suggests Indecision, Yet Bearish Patterns Absent
- Daily Close Above The 102.20 Hurdle Opens 103.00
USD/JPY may continue its drift towards the 103.00 range-top in the absence of key reversal candlesticks.
A Doji on the daily denotes some hesitation from the bulls, yet is insufficient to suggest a turning point at this stage. 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
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 102.75 to 103.00 congestion zone. Yet with a Bullish Engulfing formation in its wake the immediate risk remains to the upside for now.
USD/JPY: Awaiting Reversal Signal On Retest of 103.00
Four Hour Chart - Created Using FXCM Marketscope 2.0,Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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