Thursday, July 31, 2014

USD/JPY Hits Selling Pressure At 103.00 Yet Reversal Patterns Lacking




Talking Points



  • USD/JPY Technical Strategy: Sidelines Preferred


  • Failure To Breach 103.00 Casts Doubt On Gains


  • Awaiting Bearish Patterns To Signal A Reversal


USD/JPY has continued its ascent following a Harami pattern on the daily with the pair testing key resistance near 103.00 in recent trading. The failure to breach the psychologically-significant barrier casts some doubt on further gains. However, an absence of bearish patterns also makes a reversal questionable. This leaves the sidelines preferred until a more constructive setup presents itself.



USD/JPY: Hits Selling Pressure Yet Reversal Signals Lacking


USD/JPY Hits Selling Pressure At 103.00 Yet Reversal Patterns Lacking


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



The four hour chart reveals a similar narrative as the daily. A Harami pattern has failed to find follow-through which has left a void of reversal patterns. Several Doji formations indicate noteworthy indecision amongst traders near the 103.00 handle.



USD/JPY: Dojis Suggest Bulls Lose Steam Near 103.00 Handle


USD/JPY Hits Selling Pressure At 103.00 Yet Reversal Patterns Lacking


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



By David de Ferranti, Currency Analyst, DailyFX



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USD/JPY Hits Selling Pressure At 103.00 Yet Reversal Patterns Lacking

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