TechnoMeter

Talking Points

• USD/JPY Technical Strategy: Sidelines Preferred
• Daily Close Below 104.00 Suggests A ‘False Breakout’
• Parade of Dojis Highlight Indecision Amongst Traders

The USD/JPY bulls have seemingly lost their grip on the pair after a Doji signaled hesitation from traders near 104.00. The daily close below the critical barrier warns of further weakness and may set the scene for a retest of the 103.00 floor.

Daily Close Confirms ‘False Breakout’



A narrow trading band and parade of Dojis on the four hour chart is indicative of indecision amongst traders. This suggests awaiting a more constructive set of signals before entering new positions may be prudent.

Dojis Indicate Indecision As Trading Band Emerges



By David de Ferranti, Currency Analyst, DailyFX


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