Interesting Price Action USDJPY

A strong performance on the USDJPY has produced a potential bullish reversal signal following last week’s decline.

The recovery today, though the market has yet to close, has seen a very weak open fully recovered. This could be significant, particularly with Friday’s and today’s move being on strong volume. The two day candle-stick pattern which a close around current levels would produce, a ‘Bullish Meeting Line Pattern’. Though this requires bullish follow through over the next couple of days if it is going to be significant.

Below shows the USDJPY chart today, at around 2pm New York time, with an example and description of the ‘Bullish Meeting Line Pattern’ below. 

One final point. The price action of the past 2/3 days sets some clearly defined levels pivotal moves. Firstly if the market can continue to recover and move above the high of last Thursday 99.14 high, confirmed by a move over 99.67, the 20th Sep high, this should pave the way for strong further gains. On the other hand a failure to continue yesterday's recovery and a drop below yesterday's 97.49 low would be very damaging, and could see some strong selling pressure. - If neither scenario plays out, then the failure to breakout of either side of the recent range within a few days would suggest further lackluster trading on the pair.