USDJPY and EURUSD Technical Analysis

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.

Harami Awaiting Confirmation To Warn Of A Correction



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.

Key Reversal Pattern Emerges In Intraday Trade



By David de Ferranti, Currency Analyst, DailyFX


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Talking Points

• USD/JPY Technical Strategy: Pending Long
• Gravestone Doji Takes Shape As Upside Momentum Fades
• Dark Cloud Cover On H4 Timeframe Offered An Early Warning

USD/JPYis struggling to sustain its upside momentum as a Gravestone Doji takes shape on the daily. While a sign of indecision from traders the candlestick pattern is not considered a key reversal formation. This in turn casts some doubt over the potential for a sustained correction from the pair. Against the backdrop of a sustained uptrend buying dips is preferred.

Gravestone Doji Rising Near 2014 Highs



The four hour chart offered an early indication that USD/JPY’s upside momentum was fading. A Dark Cloud Cover formation near 105.65 signaled a shift in sentiment during the session. Buying interest is likely to be renewed at the psychologically-significant 105.00 handle.

Key Reversal Pattern Emerges In Intraday Trade



By David de Ferranti, Currency Analyst, DailyFX


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Talking Points

• USD/JPY Technical Strategy: Longs Preferred
• Daily Close Above 107.00 Opens Grind Towards 108.00
• Correction Questionable Amid Void Of Reversal Candles

USD/JPY’s upward journey has endured as a lack of key reversal candlesticks indicate the potential for further gains. The daily close above the 107 hurdle may set the pair up for a grind towards the next psychologically-significant ceiling at 108.00.

Lack of Reversal Signals Opens Further Gains



The four hour chart reveals a congestion zone has formed between 107.00 and 107.40. A medley of short body sessions and Doji candlesticks highlights indecision amongst traders. Yet the bulls appear unprepared to relinquish their grip on prices amid a void of bearish reversal signals. This leaves the risks skewed to the upside.

Climb Encounters Congestion, Yet Bulls Remain In Control



By David de Ferranti, Currency Analyst, DailyFX


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Talking Points

• USD/JPY Technical Strategy: Longs Preferred
• Doji Suggests Some Indecision, Yet Reversal Signals Absent
• Daily Close Above 107.00 May Open Grind Towards 108.00

USD/JPYtraders are showing signs of indecision as denoted by a Doji on the daily. Yet in the absence of clear reversal signals there remains the potential for a journey higher to resume. The daily close above the 107 hurdle may set the pair up for a grind towards the next psychologically-significant ceiling at 108.00.

Lack of Reversal Signals Opens Further Gains



The four hour chart reveals a congestion zone has formed between 107.00 and 107.40. A medley of short body sessions and Doji candlesticks highlights hesitation amongst traders. Yet the bulls appear unprepared to relinquish their grip on prices amid a void of bearish reversal signals. This leaves the risks skewed to the upside.

Climb Encounters Congestion, Yet Bulls Remain In Control




By David de Ferranti, Currency Analyst, DailyFX


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Talking Points

• USD/JPY Technical Strategy: Longs Preferred
• Doji Suggests Some Indecision, Yet Reversal Signals Absent
• Daily Close Above 107.00 May Open Grind Towards 108.00

The USD/JPY bulls have seemingly lost confidence as indicated by a medley of Doji formations and short body candles. Yet in the absence of clear reversal signals there remains the potential for a journey higher to resume. The daily close above the 107 hurdle may set the pair up for a grind towards the next psychologically-significant ceiling at 108.00.

Bulls Lose Steam As Dojis Denote Indecision



The four hour chart reveals a congestion zone has formed between 107.00 and 107.40. A parade of short body periods and Doji candlesticks highlights hesitation amongst traders. Yet the bulls appear unprepared to relinquish their grip on prices amid a void of bearish reversal signals. This leaves the pair awaiting a break above 107.40 to open the next leg higher.

Awaiting Breakout As Congestion Continues



By David de Ferranti, Currency Analyst, DailyFX


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Talking Points

• USD/JPY Technical Strategy: Sidelines Preferred
• Bearish Engulfing Pattern Finds Confirmation
• Close Below 108.00 Floor May Open 107.00

USD/JPY is at a critical juncture as the confirmation of a Bearish Engulfing formation warns of a deeper setback for the pair. A close under the 108.00 floor would be required to open the next leg lower to the 107.00 barrier.

Bearish Engulfing Pattern Receives Confirmation


The four hour chart paints a less discouraging picture for the pair. A Harami candlestick pattern offered an early indication of an intraday rebound. While a Doji suggests some waning momentum a correction over the session ahead is made questionable by an absence of key reversal signals.

Harami Heralded Intraday Rebound




By David de Ferranti, Currency Analyst, DailyFX


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Talking Points

• USD/JPY Technical Strategy: Sidelines Preferred
• Dark Cloud Cover Receives Confirmation
• Close Below 108.00 Floor May Open 107.00

USD/JPY continues to keep traders in suspense near the 108.00 hurdle as a Dark Cloud Cover pattern warns of weakness. A close under the 108.00 floor may herald a deeper correction to the 107.00. However, some skepticism over a continued pullback may be warranted – given recent reversal signals have been met with some disdain by traders.

Pullback Produces A Dark Cloud Cover Pattern



Intraday action paints a divergent picture to the daily as a Piercing Line pattern on the four hour chart offers a source of hope for the USD/JPY bulls. The reversal signal has received confirmation from a successive up period, which may be the precursor to a continued intraday advance.

Piercing Line Pattern Emerges Near Critical 108.00 Barrier



By David de Ferranti, Currency Analyst, DailyFX


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Talking Points

• USD/JPY Technical Strategy: Sidelines Preferred
• Doji Suggests Some Reluctance Near 108.00
• Close Below 108.00 Floor May Open 107.00

USD/JPY is at a critical juncture as the pair probes below the 108.00 floor. Yet hesitation amongst traders at the critical barrier is made evident by a Doji in recent trade. A close under the 108.00 floor would potentially herald a deeper correction to the 107.00 mark.

Doji Highlights Hesitation Near 108.00 Barrier



The four hour chart reveals a disdain from traders towards several recent reversal patterns including a Piercing Line and Morning Star formation. This suggests the threshold to reinvigorate the bulls may be high, and casts some doubt over a potential recovery. Some intraday buying interest is evident near 108.00, below which may see some support renewed at 107.40.

Disdain For Bullish Patterns Casts Doubt On A Recovery



By David de Ferranti, Currency Analyst, DailyFX


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Talking Points

• USD/JPY Technical Strategy: Shorts Preferred
• Dark Cloud Cover Warns Of Further Weakness
• Dojis On H4Suggests Some Reluctance Sub 108

USD/JPY’s slide under the 108.00 floor following a Dark Cloud Cover pattern warns of further weakness for the pair. Thus far the descent has proven slow with a string of several short body candles highlighting some hesitation from the bears to lead the pair lower. Yet with bullish candlesticks lacking a deeper correction to the 107.00 barrier may be on the cards.

Dark Cloud Cover Warns Of Further Weakness



The four hour chart highlights the extent of traders’ hesitation near the 108.00 handle. Yet with bullish patterns also lacking in intraday trade a recovery is questionable.

Bulls Struggle To Regain Their Grip Sub 108.00




By David de Ferranti, Currency Analyst, DailyFX


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Talking Points

• USD/JPY Technical Strategy: Shorts Preferred
• Piercing Line Pattern Awaiting Confirmation
• Dojis On H4Suggests Some Reluctance Near 107

USD/JPY has found some buying interest renewed at the 106.80 mark as a Piercing Line candlestick pattern takes shape. Critically, the key reversal formation awaits the close of the current candle and a successive up-day to provide confirmation. In the alternate scenario a pullback below the 106.80 floor would open the next leg lower to 105.40

Piercing Line Pattern Takes Shape



A Harami on the four hour chart is awaiting confirmation from an ensuing up-period to be confirmed. An intraday advance is likely to be met by renewed selling pressure at the nearby 107.50 ceiling.

Bulls Return As Harami Awaits Confirmation




By David de Ferranti, Currency Analyst, DailyFX


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