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USDJPY 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.
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.