Forex: USD/JPY Technical Analysis – Triangle Setup in the Making?
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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 treading water against the Japanese Yen after setting a swing low near the 101.00 figure. A daily close 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.
Positioning may be in the process of producing an Ascending Triangle chart pattern, a setup indicative of bullish trend continuation, but confirmation is absent for the time being. Furthermore, a strong link between USD/JPY and the 10-year US Treasury yield (0.80 on 20-day percent change studies) warns against committing to a direction before the upcoming release of US CPI data. 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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.