Forex Strategy: USD/JPY Hanging Man Results In Further Weakness
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Talking Points
USD/JPY Technical Strategy: Hanging man continues to warn of potential weakness
Stalling of the uptrend on the pair may open up support level at 102.00
Risk –reward at current prices is not optimal for new shorts
The recent uptrend in USD/JPY appears to have stalled following the formation of a Hanging Man candle pattern on the 4 hour chart. This comes as sellers continue to suppress gains in the pair around the 102.63 level of resistance.
A potential target for short positions is offered by the 102.00 support mark which coincides with the 38.2% Fib Retracement level. However, the risk-reward on new shorts at current levels is less than ideal.
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Four Hour Chart - Created Using FXCM Marketscope 2.0
--- Written by David de Ferranti, Market Analyst, FXCM
Contact and follow David on Twitter: @Davidde
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