Thursday, August 28, 2014

USD/JPY Loses Steam With Dojis Indicating Indecision




Talking Points



  • USD/JPY Technical Strategy: Sidelines Preferred


  • Daily Close Below 104.00 Suggests A ‘False Breakout’


  • Parade of Dojis Highlight Indecision Amongst Traders


The USD/JPY bulls have seemingly lost their grip on the pair after a Doji signaled hesitation from traders near 104.00. The daily close below the critical barrier warns of further weakness and may set the scene for a retest of the 103.00 floor.



USD/JPY: Daily Close Confirms ‘False Breakout’


USD/JPY Loses Steam With Dojis Indicating Indecision


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



A narrow trading band and parade of Dojis on the four hour chart is indicative of indecision amongst traders. This suggests awaiting a more constructive set of signals before entering new positions may be prudent.



USD/JPY: Dojis Indicate Indecision As Trading Band Emerges


USD/JPY Loses Steam With Dojis Indicating Indecision


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 Loses Steam With Dojis Indicating Indecision

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