USD/JPY has recovered some ground in recent trading, although sellers appear to be capping gains for the pair near the 101.70 mark. The daily chart may be set to post an Inside Day pattern, which could hint at more significant bounce. However, the current candle has yet to close and receive confirmation.
USD/JPY: Shooting Star Offered Ominous Warning
Daily Chart - Created Using FXCM Marketscope 2.0
Drilling down to examine intraday price action; the four hour chart reveals a Hammer formation that has received confirmation. Further gains in intraday trade are likely to once again be met by selling pressure at 102.00.
USD/JPY: Sellers Likely To Emerge At 102.00
Four Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, FXCM
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