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, the candlestick helped herald a bounce. While a Harami pattern appears to be forming on the daily it does little to suggest a correction until the current candle closes.
Scrutinizing the four hour chart below a Doji formation signaled some indecision after USD/JPY’s dramatic ascent in recent trading. While the candlestick yielded a slight retreat, further follow-through may be limited given the context afforded by the daily.
