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Talking Points:
- USD/JPY Technical Strategy: Flat
- Support: 119.32, 118.88, 118.45
- Resistance: 119.86, 120.73, 121.55
The US Dollar is attempting to mount a recovery against the Japanese Yen after reversing downward as expected. A daily close above the 23.6% Fibonacci expansion at 119.86 exposes the April 9 high 120.73. Alternatively, a reversal back below the 38.2% level at 119.32 opens the door for a challenge of the 50% Fib at 118.88.
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.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
