Talking Points
- Strategy: Long, Target: 117.90, Stop: 115.90 (Close)
- Focus Remains Higher With Hanging Man Lacking Validation
- Dojis Signal Enduring Tug-Of-War In Intraday Trade
USD/JPY is probing above the 115.90 ceiling in intraday trade with an absence of reversal signals opening the prospect of further gains. This leaves longs preferred with a potential target offered by the October ’07 high near 117.90. A daily close below 114.60 would be required to warn of a top for the pair.
USD/JPY: Probes Above Recent Highs With Bearish Signals Lacking
Daily Chart – Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
The four hour chart tells a similar narrative to the daily. An absence of key reversal signals casts the immediate risks higher for the pair with the 116.00 handle now acting as support.
USD/JPY: Void of Bearish Signals Keeps Immediate Risks Higher
Four Hour Chart – Created Using FXCM Marketscope 2.0,Volume Indicator Available Here
By David de Ferranti, Currency Analyst, DailyFX
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