Talking Points
- USD/JPY Technical Strategy: Longs Preferred
- Breakout Leaves Void Of Bearish Patterns
- H4 Chart Offered Intraday Correction Warning
USD/JPY has finally cleared the critical 104.00 barrier with a void of bearish signals suggesting the potential for further gains. This leaves the spotlight on the Mid-January highs near 104.85. A daily close below 104.00 would signal a false breakout and warn of a more sustained correction for the pair.
USD/JPY: Climbs Over 104.00 Barrier With Bearish Patterns Lacking
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
A Harami formation on the four hour timeframe offered an early indication of the potential for a slight pullback. However, with strong buying support likely sitting around the 104.00 handle the extent of further declines may be limited.
USD/JPY: Harami Warned Of An Intraday Correction
Four Hour Chart - Created Using FXCM Marketscope 2.0,Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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