- USD/JPY Technical Strategy: Shorts Preferred
- Bearish Engulfing pattern suggests declines to continue
- Range-bottom offers target of 101.20 for shorts
USD/JPY may be set to extend its recent declines following the formation of a Bearish Engulfing candlestick pattern near the range-top at 102.77. However, new short entries may not be ideal at current levels, given support rests nearby at 101.20.
USD/JPY: Bearish Engulfing Pattern Puts Pressure on USD/JPY
Daily Chart - Created Using FXCM Marketscope 2.0
An examination of the four hour chart reveals a Piercing Line pattern which helped indicate an intraday bounce for the pair. However, a further recovery may be a stretch with the psychologically-significant 102.00 handle hanging nearby.
USD/JPY: Recovery Post Piercing Line Limited By Nearby Resistance
Four Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, DailyFX
Follow David on Twitter: @Davidde
To receive David’s analysis directly via email, please sign up here.
Learn how to read candlesticks to help identify trading opportunities with the DailyFX Candlesticks Video Course.
- Basic Materials Industry