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USD/JPY Dual Inside Bars (ii pattern) - Downside Break?

Published 06/17/2013, 02:09 AM
Updated 05/14/2017, 06:45 AM
USD/JPY
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ACT
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USDJPY – Forms Back to Back Inside Bars

After selling off over 1000 pips over the last 20 days, the pair has formed back to back inside bars or an ii pattern, which was formed within a large tailed pin bar at the 93.81 support. Notice Sunday's bar which is an inverted pin bar, from which an order flow perspective translates into a failed attempt to rally.

The short term there is a range in play between 96.00 and 93.81. If the downside level caves, 92.45 will be under attack. If the topside cracks, then 97.00 will challenge the bulls next. I favor the downside and will look to rejoin the downtrend on a breakdown of the inside bars, or a pullback towards resistance.
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