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USDJPY Downside Risks Remain While Hammer Confirmation

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by , 08-12-2014 at 09:57 AM (756 Views)
      
   
Talking Points

[LIST][*]USD/JPY Technical Strategy: Shorts Preferred [*]Hammer Awaits Confirmation To Suggest Recovery [*]Focus Remains On Range-Bottom Near 101.00/20 [/LIST]
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.

[U]Hammer May Fail To Find Follow-Through[/U]
[IMG]https://media.dailyfx.com/illustrations/2014/08/11/USDJPY-Downside-Risks-Remain-As-Hammer-Awaits-Confirmation_body_Picture_2.png[/IMG]

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.
[U]
Harami May Yield Intraday Weakness[/U]

[IMG]https://media.dailyfx.com/illustrations/2014/08/11/USDJPY-Downside-Risks-Remain-As-Hammer-Awaits-Confirmation_body_Picture_1.png[/IMG]

By David de Ferranti, Currency Analyst, DailyFX


[URL="http://www.dailyfx.com/forex/technical/candlesticks/usd-jpy/2014/08/11/USDJPY-Downside-Risks-Remain-As-Hammer-Awaits-Confirmation.html"]More...[/URL]

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