To receive Ilya's analysis directly via email, please SIGN UP HERE
Talking Points:
- USD/JPY Technical Strategy: Flat
- Support: 119.66, 118.93, 118.20
- Resistance: 120.68, 121.41, 122.13
The US Dollar continued to move higher against the Japanese Yen as expected after taking out the top of a Flag chart pattern. A daily close above the 38.2% Fibonacci expansion at 120.68 exposes the 50% level at 121.41. Alternatively, a reversal below 119.66 (38.2% Fib retracement, channel top resistance-turned-support) opens the door for a challenge of the 50% retracement at 118.93.
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
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
