Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious Outperformance
Find Stocks Now

USD/JPY Bearish Signal Provokes Correction

Published 04/07/2014, 11:33 AM
Updated 07/09/2023, 06:31 AM

Talking Points
  • USD/JPY Technical Strategy: Sidelines preferred
  • Shooting Star pattern near 104.00 receives confirmation
  • 103.00 offering support as Doji suggests hesitation from bears

A Shooting Star candlestick formation is warning of more declines ahead for USD/JPY after the bearish reversal signal received confirmation from an ensuing down day. The potential for a correction is made more noteworthy by a break below a key support level at 103.50.

USD/JPY: Bulls Retreat Following Test of 104.00

Created Using FXCM Marketscope 2.0

Drilling down to the four hour chart; the unusually long series of Doji candlesticks near the critical 104.00 level suggested deliberation amongst the bulls. However, the long-legged Doji that has formed at the psychologically-significant 103.00 mark is a sign of hesitation from the bears, which leaves an unclear technical bias.

USD/JPY: Doji Near 103.00 Highlights Indecision Amongst Traders

Created Using FXCM Marketscope 2.0

By David de Ferranti, Market Analyst, FXCM

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.