On a 4-hour chart of USD/JPY, “Hammer” candle shaped. Nevertheless, short positions should be kept open before the resistance level of 88.76 is broken out. As it is anticipated, still there is a probability for the USD/JPY currency pair of downward motion with target at 84.77.
On a 4-hour chart, USD/JPY has developed Doji candle earlier, which is a signal for a decreasing motion, which has been confirmed thereafter. This candle showed that before, the pair had not managed to breach resistance level around 92.90-93.00, after that the decline took place. In addition, Fibonacci correction level of 50.0, which turned out to be a strong support level was successfully broken out. Further, Gravestone Doji candle formed, which emphasized the bears dominance on the market.
For those, who have opened long positions, it is advisable to set stop-orders slightly below 86.96, as the breach of this mark will open the way to 84.77.