Forex: USD/JPY Technical Analysis – Upside Break to be Negated?
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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 struggling to continue higher against the Japanese Yen after prices cleared resistance at 102.54, the 38.2% Fibonacci retracement. A close back below this barrier targets the 23.6% level at 101.85 anew. Alternatively, renewed upward momentum that takes prices back above 102.54 sees the next layer of resistance at 103.09, the 50% Fib.
An actionable trade setup is absent for the time being. Yesterday’s resistance break seems to call for further gains but the severity of the current intraday pullback raises a strong possibility of that having been a false breakout. With that said, downward reversal confirmation is absent for now. We remain flat for now.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.