USD/JPY Vertical Climb Leaves Lack Of Reversal Patterns In Its Wake

Talking Points

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  USD/JPY Technical Strategy: Longs Preferred
  


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  Clearance Of Key Hurdles Casts Spotlight Higher
  


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  Next Definitive Level Offers Significant Upside Scope
  

USD/JPY’s astounding vertical ascent has left a lack of reversal signals in its path, suggesting the potential for further gains. The next definitive peak to offer a potential resistance region rests near 114.60, the December 2007 high. However, traders should also be wary of the recent weekend gap, given the tendency of such spaces to be filled which may prove a temporary setback. A daily close below the 110.00 barrier would be required to negate a bullish bias.

USD/JPY: Climbs Over Key Hurdles Amid A Void Of Bearish Patterns

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

A Doji on the four hour chart suggests the bulls may be showing signs of tiring. Yet key bearish reversal signals remain lacking, casting doubt on a corrective pullback.

USD/JPY: Void Of Bearish Signals In Intraday Trade

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 Vertical Climb Leaves Lack Of Reversal Patterns In Its Wake