Talking Points
- Strategy: Long 115.90, 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 continues to keep traders in suspense near its recent 115.90/116.00 peak as a Hanging Manawaits confirmation. A successive down-period would validate the signal and warn of a potential pullback. Yet within the context of a sustained uptrend, such a setback may prove only temporary. This leaves longs preferred with a breakout above the recent highs to potentially pave the way for an ascent on 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: Awaits Break Above Recent Highs
Daily Chart – Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
Tensions are running high in intraday trade, as evidenced by a string of Dojiformations on the four hour chart. Yet a lack of more definitive reversal signals suggests the bulls may be able to retain their grip on prices to lead the charge higher.
USD/JPY: Dojis Signal Enduring Tug-Of-War 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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