USD/JPY Left Hanging Near 105 As A Harami Pattern Awaits Confirmation

Talking Points

  • USD/JPY Technical Strategy: Pending Long
  • Harami Awaiting Confirmation To Warn Of A Correction
  • Bullish Engulfing Formation Hints At Intraday Recovery

USD/JPYhas been left in a precarious position as Harami threatens to topple the pair. If confirmed by an ensuing down session it could signal a correction towards buying support at the 104.25 floor. However, against the backdrop of a short-term uptrend buying dips would be preferred.

USD/JPY: Harami Awaiting Confirmation To Warn Of A Correction

USD/JPY Left Hanging Near 105 As A Harami Pattern Awaits Confirmation

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

The four hour chart offered an early indication that USD/JPY’s upside momentum was fading. A Doji formation near 105.28 signaled hesitation from the bulls. The emergence of a key reversal pattern near intraday support at 104.73 offers some hope for a retest of the pair’s recent highs.

USD/JPY: Key Reversal Pattern Emerges In Intraday Trade

USD/JPY Left Hanging Near 105 As A Harami Pattern Awaits Confirmation

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

By David de Ferranti, Currency Analyst, DailyFX

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