The week closed with a Doji in USD/JPY

Sat, Mar 05 2016, 11:44 GMT | FXStreet

The emergence of a Southern doji pattern on the USD/JPY weekly chart suggests a certain degree of exhaustion in this market.

ADX readings above 30 indicating a strong trend coupled with the RSI below 40% strengthen the argument a reversal from oversold territory is now likely.

Southern doji candles are considered bullish especially when formed during a declining leg. In any case it should be treated with caution as the pattern can often appear numerous times during a downtrend.

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