In our last week's USDJPY analysis we warned traders of the bearish hammer candlestick pattern that we noticed in the weekly USDJPY chart. However this week started on a very different note with a strong Dollar and price making new higher highs. The funny thing with weekly charts is that traders need to be patient and wait and see where the weekly candle closes. This week was something like a bad surprise for USDJPY bulls.
USDJPY not only has formed another bearish hammer candlestick pattern, price is below last week's close and we are very close to breaking below last week's lows. Despite making a new higher high, this does not look sustainable by bulls. The bullish trend is weak and I continue to support a multi week pull back in USDJPY. Traders need to be cautious.