TechnoMeter

Talking Points

• USD/JPY Technical Strategy: Shorts Preferred
• Hammer Awaits Confirmation To Suggest Recovery
• Focus Remains On Range-Bottom Near 101.00/20

USD/JPY’s recent Hammer formation on the daily may fail to yield a recovery for the pair with heavy congestion overhead. A jump over the 102.20 hurdle would be required to cast the immediate risk the upside, which would open the 102.77/103.00 range-top. However, at this stage the focus remains on the 101.00/20 floor.

Hammer May Fail To Find Follow-Through


The four hour chart offered an early warning indication for USD/JPY’s intraday reversal. The Dragonfly Doji formation near 101.75 suggested a bounce to the psychologically-significant 102.00 handle. With a Harami pattern now in its wake there may be the potential for intraday weakness for the pair.

Harami May Yield Intraday Weakness



By David de Ferranti, Currency Analyst, DailyFX


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