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- USD/JPY Technical Strategy: Flat
- Support: 101.69 (channel floor), 100.75 (Feb 4 low)
- Resistance: 102.84 (23.6% Fib exp.), 104.14 (38.2% Fib exp.)
The US Dollar may be readying to reverse higher against the Japanese Yen after prices produced a bullish Harami candlestick pattern. Initial resistance is at 102.84, the 23.6% Fibonacci expansion, with a break above that targeting the 38.2% level at 104.14. Near-term support is at the bottom of a rising channel set from early February, now at 101.69. A daily close below this boundary exposes the February 4 low at 100.75.
A Harami candle pattern implies a relatively low level of conviction in a possible reversal. With that in mind, we will continue to stand aside and wait for added confirmation before attempting to enter a long position.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com