To receive Ilya’s analysis directly via email, please SIGN UP HERE
Talking Points:
- USD/JPY Technical Strategy: Flat
- Support: 114.21, 112.08, 1100.76
- Resistance: 115.53, 116.34, 117.66
The US Dollar continues to race higher against the Japanese Yen having turned upward as expected after putting in a Morning Star candle pattern. Near-term resistance is at 115.53, the 114.6% Fibonacci expansion, with a break above that on a daily closing basis exposing the 123.6% level at 116.34. Alternatively, a reversal back below the 100% Fib at 114.21 opens the door for a test of the 76.4% expansion at 112.08.
Prices are too close to resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal suggests that taking up the short side is premature. With that in mind we will remain flat for now.
Add these technical levels directly to your charts with our Support/Resistance Wizard app!
Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for DailyFX.com