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- USD/JPY Technical Strategy: Flat
- Support: 101.28 (61.8% Fib exp.), 100.87 (76.4% Fib exp.)
- Resistance:101.61-74 (50% Fib exp., channel floor), 101.94 (38.2% Fib exp.)
The US Dollar may be vulnerable to renewed selling against the Japanese Yen after prices cleared support at the bottom of a rising channel in play since early February. Sellers are testing the 61.8% Fibonacci expansion at 101.28, with a daily close below that eyeing the 76.4% level at 100.87. Resistance is in the 101.61-74 area, marked by the 50% Fib and the channel floor. A turn above that clears the way for a test the 38.2% expansion at 101.94.
Risk/reward considerations argue against taking a trade at present withprices wedged too closely between near-term up- and down-side technical barriers. We will continue to wait on the sidelines for the time being.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com