Technical Analysis for USDJPY - Doji Highlights Hesitation Near 108.00 Barrier

• USD/JPY Technical Strategy: Sidelines Preferred
• Doji Suggests Some Reluctance Near 108.00
• Close Below 108.00 Floor May Open 107.00

USD/JPY is at a critical juncture as the pair probes below the 108.00 floor. Yet hesitation amongst traders at the critical barrier is made evident by a Doji in recent trade. A close under the 108.00 floor would potentially herald a deeper correction to the 107.00 mark.

The four hour chart reveals a disdain from traders towards several recent reversal patterns including a Piercing Line and Morning Star formation. This suggests the threshold to reinvigorate the bulls may be high, and casts some doubt over a potential recovery. Some intraday buying interest is evident near 108.00, below which may see some support renewed at 107.40.