- Yen is pushing higher as the US stock futures are losing altitude.
- Tuesday’s Doji candle has made Wednesday’s close pivotal.
The anti-risk Japanese yen is drawing bids and pushing the USD/JPY lower amid losses in the US stock futures.
At press time, USD/JPY is trading at session lows near 110.85, having hit a high of 11.54 in early Asia, while the futures tied to the S&P 500 are shedding over 1%.
The immediate outlook remains neutral with the pair trading well within the range of Tuesday’s Doji candle, which occurs when prices swing both ways and end the day on a flat note.
A bearish reversal Doji pattern would be confirmed if the spot closes Wednesday under Tuesday’s low of 110.08. Alternatively, a move above Tuesday’s high of 111.71 would imply a continuation of the rally from the March 9 low of 101.18.
The Doji has appeared following a notable rally, meaning the indecision is predominantly among the bulls. To put it another way, the Doji candle is reflective of buyer exhaustion. As a result, the prospects of a bearish close look strong.
Daily chart
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Trend: Neutral
Technical levels
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