Forex: USD/JPY Technical Analysis – Trend Line Marks Resistance
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- USD/JPY Technical Strategy: Flat
- Support: 102.84 (23.6% Fib exp.), 101.38 (Feb 17 low)
- Resistance:103.13 (trend line), 104.14 (38.2% Fib exp.)
The Japanese Yen has dropped to a five-week low against the US Dollar as prices broke above resistance at 102.84, the 23.6% Fibonacci expansion. Buyers are now testing falling trend line resistance set from late December at 103.13, with a break above that exposing the 38.2% level at 104.14. Alternatively, a turn back below 102.84 aims for the February 17 low at 101.38.
Prices are too close to relevant resistance at this point to justify a long position on risk/reward grounds. On the other hand, attempting to re-enter short without a defined downward reversal signal seems premature. We will 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.