Forex: USD/JPY Technical Analysis – Yen Hits 6-Day Low vs. Dollar
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- USD/JPY Technical Strategy: Flat
- Support: 101.85 (23.6% Fib ret.), 100.75 (Feb 2 low)
- Resistance: 102.53 (38.2% Fib ret.), 103.08 (50% Fib ret.)
The US Dollar is cautiously edging higher against the Japanese Yen, with a close above the 23.6% Fibonacci expansion at 101.85 clearing the way for a test of the 38.2% level at 102.53. A further push beyond that on a daily closing basis exposes the 50% Fib at 103.08. Alternatively, a turn back beneath 101.85 aims for the February 4 swing low at 100.75.
Prices are narrowly wedged between immediate up- and downside technical barriers, arguing against a trade on the long or short side from a risk/reward perspective. Furthermore, the Yen’s sensitivity clouded risk appetite trends warn against taking directional bets on fundamental grounds. As such, we will continue to stand aside for now.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com