USDJPY Price Pattern Analysis - Dark Cloud Cover Receives Confirmation
9 October 2014, 06:11
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- 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.
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.
