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30 Nov 2015
EUR/JPY closed hesitant to pick direction
The emergence of a Southern doji pattern on the EUR/JPY daily chart suggests a certain degree of exhaustion in the market.
During a decline, this candlestick pattern usually changes the market's short-term trend from down to neutral. In this case, with the RSI below 30% on this time frame, the likelihood of a reversal from oversold territory increases.
Additionally, an ADX above 30 is indicative of a persistent trend at least. Technically oriented traders may use this signal to liquidate shorts, sell puts, and move down stops.
During a decline, this candlestick pattern usually changes the market's short-term trend from down to neutral. In this case, with the RSI below 30% on this time frame, the likelihood of a reversal from oversold territory increases.
Additionally, an ADX above 30 is indicative of a persistent trend at least. Technically oriented traders may use this signal to liquidate shorts, sell puts, and move down stops.