USD/JPY Awaiting Next Break With Bearish Signals Lacking

Talking Points

• Strategy: Long > 115.90 Target: 117.90 Stop: 115.90 (Close)
• Focus Remains Higher With Bearish Signals Lacking
• Dojis Signal Enduring Tug-Of-War In Intraday Trade

USD/JPY has powered higher in recent trade leaving a Hanging Manformation to fall flat. With bearish signals lacking the pair may be primed for further gains. Clearance of the nearby 115.90 hurdle could pave the way for an ascent on the October ’07 high near 117.90. A daily close below 114.50 would be required to warn of a top for the pair.

USD/JPY: Awaits Break Above Recent Highs With Bearish Signals Lacking

Daily Chart - Created Using FXCM Marketscope 2.0 Volume Indicator Available Here

Tensions are running high in intraday trade as evidenced by a string of Dojiformations on the four hour chart. Yet a lack of more definitive reversal signals suggests the bulls may yet regain their grip on prices to lead the charge higher.

USD/JPY: Dojis Signal Enduring Tug-Of-War In Intraday Trade

Four Hour Chart - Created Using FXCM Marketscope 2.0Volume Indicator Available Here

By David de Ferranti Currency Analyst DailyFX

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