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Dollar/Yen Back At 80.00 Level – No Follow Through Seen After Bearish Reversal
The USDJPY is once again trading back at the 80.00 level. The bearish engulfing candle we discussed in a previous post (when price was at 79.63) was followed by a downside move to a low of 79.27 before the dollar/yen currency pair resumed its upside trajectory. The failure to sustain lower prices may see an element of short covering from speculators, which could likewise add additional upside pressure. The break of an inside day to the upside (see chart below) could also be cause for concern for technical traders and possibly removes an element of weight from the short side bias. Ultimately a bearish engulfing candle ... (full story)