Talking Points
- USD/JPY Technical Strategy: Longs Preferred
- Upside Break Overshadows Hanging Man Formation
- Key Reversal Signals Lacking On The H4 Chart
USD/JPY’s break of the 108.30 ceiling has overshadowed a bearish signal offered by a Hanging Man formation. This in turn casts the immediate risks higher for a retest of the recent peaks near 110.00.A pullback below former resistance-turned-support at 108.30 would be required to negate a bullish bias.
USD/JPY: Reversal Signal Emerges At 108.00 Handle
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart demonstrates some hesitation from the bulls, as denoted by a Doji formation. However, in the absence of more definitive reversal signals a correction lower is questionable.
USD/JPY: Bearish Reversal Signals Lacking 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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