USD/JPY Clings To 107.00 As Dojis Highlight Hesitation From Traders

Talking Points

  • USD/JPY Technical Strategy: Longs Preferred
  • Doji Suggests Some Indecision, Yet Reversal Signals Absent
  • Daily Close Above 107.00 May Open Grind Towards 108.00

The USD/JPYbulls have seemingly lost confidence as indicated by a medley of Doji formations and short body candles. Yet in the absence of clear reversal signals there remains the potential for a journey higher to resume. The daily close above the 107 hurdle may set the pair up for a grind towards the next psychologically-significant ceiling at 108.00.

USD/JPY: Bulls Lose Steam As Dojis Denote Indecision

USD/JPY Clings To 107.00 As Dojis Highlight Hesitation From Traders

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

The four hour chart reveals a congestion zone has formed between 107.00 and 107.40. A parade of short body periods and Doji candlesticks highlights hesitation amongst traders. Yet the bulls appear unprepared to relinquish their grip on prices amid a void of bearish reversal signals. This leaves the pair awaiting a break above 107.40 to open the next leg higher.

USD/JPY: Awaiting Breakout As Congestion Continues

USD/JPY Clings To 107.00 As Dojis Highlight Hesitation From Traders

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

By David de Ferranti, Currency Analyst, DailyFX

Follow David on Twitter: @Davidde

To receive David’s analysis directly via email, please sign up here.

Learn how to read candlesticks to help identify trading opportunities with the DailyFX Candlesticks Video Course.

This entry was posted in Binary Options Signals Related News and tagged , , . Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *