USD/JPY has finally broken its narrow range between 102.00 and 102.70. The Shooting Star formation near the 102.70 mark indicated the bears had taken control of prices. The daily close below 102.00 opens up further declines to the next level of support at 101.20 as a bullish reversal signal remains missing on the daily.
USD/JPY: Breaks Recent Range Following Shooting Star
Daily Chart - Created Using FXCM Marketscope 2.0
Examining the four hour chart, the Bearish Engulfing pattern near 102.70 has resulted in extended declines for USD/JPY. While, a Hammer formation suggests some hesitation from sellers near 101.20/30 it may be too early to suggest a bounce given the context provided by the daily.
USD/JPY: Bearish Engulfing Pattern Near Key Resistance Delivers Declines
Four Hour Chart - Created Using FXCM Marketscope 2.0
By David de Ferranti, Market Analyst, DailyFX
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