Forex: USD/JPY Technical Analysis – Resistance Below 103.00 Eyed
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- USD/JPY Technical Strategy: Flat
- Support: 101.39 (Feb 17 low), 100.75 (Feb 4 low)
- Resistance: 102.84 (23.6% Fib exp.), 104.14 (38.2% Fib exp.)
The US Dollar is attempting to re-launch its advance against the Japanese Yen. A break above resistance at 102.84, the 23.6% Fibonacci expansion, targets the 38.2% level at 104.14. Initial support is at 101.38, the February 17 low, followed by the February 4 bottom at 100.75.
Risk/reward considerations call against entering long with prices trading too close to near-term resistance. On the hand, the absence of an actionable bearish reversal argues against attempting to take a shot on the short side. As such, we will remain on the sidelines for now, waiting for an attractive opportunity to buy the pair in line with the long-term uptrend.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com