USD/JPY Technical Strategy: Longs Preferred
Doji suggested hesitation near key support
Range between 101.20 and 102.77 remains in play
USD/JPY’s long-held range between 101.20 and 102.77 remains intact after the pair teased at a breakout in recent trading. A Doji near 101.20 signaled hesitation amongst traders, and while not a key reversal pattern, helped herald a bounce.
Traders should note the upcoming US NFPs report hold the potential to spark significant volatility for USD/JPY, which could act to negate technical signals offered.
Scrutinizing the four hour chart below there is a notable absence of bearish reversal formations, which casts doubt on the potential for a pullback in intraday trade. The bulls were seemingly undeterred by an Evening Star formation near 101.65, suggesting they remain in control of prices for now.
