Monday, September 29, 2014

USD/JPY Climbs To 6 Year With Absence Of Bearish Candlesticks




Talking Points



  • USD/JPY Technical Strategy: Sidelines Preferred


  • Bulls Return Following Lack Of Reversal Signals


  • Daily Close Above 109.40 Needed To Open 110.65


USD/JPYhas pushed past the 109.40 barrier after the pair was left with a lack of negative cues from candlesticks. A daily close above the mark may help confirm whether there is enough conviction amongst the bulls to lead a charge to towards the August ’08 high near 110.65.



USD/JPY: Awaiting Daily Close To Signal Conviction Amongst The Bulls


USD/JPY Climbs To 6 Year With Absence Of Bearish Candlesticks


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



A Bullish Engulfing formation on the four hour chart offered an early indication of a potential upside break for USD/JPY. There are further encouraging signs with a string of Dojis near 109.20 suggesting reluctance amongst the bears to drag the pair lower in intraday trade.



USD/JPY: Bullish Engulfing Formation Helped Herald Upside Breakout


USD/JPY Climbs To 6 Year With Absence Of Bearish Candlesticks


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 Climbs To 6 Year With Absence Of Bearish Candlesticks

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