USD/JPY: candle analysis points to 106 yen
According to the Tokyo-based Gaitame.com Research Institute, USD/JPY may slide to 106.00 yen on the technical basis.
USD/JPY hit 110.09 yen on Wednesday – this was the highest level since August 2008. However, the pair closed the day much lower, at 108.85, forming a large red candle. This candle type is known as a closing “marubozu” (bald monk). What’s more, this was a “bearish engulfing” candle: Wednesday candle engulfed the smaller Tuesday candle.
Chart. Daily USD/JPY