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Talking Points:
- USD/JPY Technical Strategy: Flat
- Support: 102.11 (23.6% Fib exp.), 101.49 (channel floor)
- Resistance: 102.60 (38.2% Fib exp.), 103.00 (50% Fib exp.)
The US Dollar began to turn higher as expected against the Japanese Yen after prices put in a bullish Morning Star candlestick pattern at rising channel support set from early February. A break above the 23.6% Fibonacci expansion at 102.11 has exposed the 38.2% level at 102.60. Pushing further above that aims for the 50% level at 103.00. Alternatively, a turn back below 102.11 eyes the channel floor, now at 101.49.
The available trading range is too narrow to justify a trade from a risk/reward perspective. We will continue to stand aside for now, looking for a more attractive entry to present itself.
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Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for DailyFX.com