Forex Strategy: USD/JPY Plunges Following Shooting Star Candlestick
Talking Points
USD/JPY Technical Strategy: shorts preferred
Shooting Star pattern near 104.00 offered ominous warning
102.00 in focus as the next potential support level
The Shooting Star pattern noted in recent candlestick’s reports has resulted in extended declines for USD/JPY with the pair plunging below the 103.00 handle in recent trading. There are few signs of the push lower slowing, given a bullish reversal signal remains missing on both the daily and four hour charts. This puts the psychologically-significant 102.00 mark in focus as the next potential level of support for the pair.
USD/JPY: Shooting Star Offered Ominous Warning
Daily Chart - Created Using FXCM Marketscope 2.0
Drilling down to the four hour chart; the unusually long series of Doji candlesticks near the critical 104.00 level suggested deliberation amongst the bulls. With the bears taking control of prices and sending USD/JPY spiraling below prior support zones, there is some doubt over the potential for a bounce in intraday trade.
USD/JPY: Eyeing 102.00 As Next Support
Four Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, FXCM
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