USD/JPY Bulls Return On Test of Key Support As Morning Star Emerges

Talking Points

  • USD/JPY Technical Strategy: Longs Preferred
  • Morning Staroffers bullish signal near key support
  • Harami warns of intraday weakness

The USD/JPYbulls may be able to breathe a sigh of relief following the pair’s respect of crucial support at 101.20. The bounce off the range-bottom has yielded a Morning Star formation, which suggests the potential for a push higher if confirmed by a successive up-day. Sellers are likely to emerge at the range-top near 102.77 with interim resistance looming at the psychologically-significant 102.00 handle.

USD/JPY: Key Reversal Pattern Emerges On Test of Range-Bottom

USD/JPY Bulls Return On Test of Key Support As Morning Star Emerges

Daily Chart – Created Using FXCM Marketscope 2.0, Volume Indicator Available Here

Scrutinizing the four hour chart; the Piercing Line formation offered an early indication of the potential for USD/JPY to recover ground. However, a Harami pattern near 101.65 warns of a short-term pullback over the session ahead. Given the context afforded by the daily, a slight correction would be preferred for new long entry opportunities.

USD/JPY: Harami Warns Of Intraday Weakness

USD/JPY Bulls Return On Test of Key Support As Morning Star Emerges

Four Hour Chart – Created Using FXCM Marketscope 2.0,Volume Indicator Available Here

By David de Ferranti, Currency Analyst, DailyFX

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