Forex: USD/JPY Technical Analysis – Topping Below 104.00 Figure?
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- USD/JPY Technical Strategy: Flat
- Support: 102.65 (23.6% Fib exp.), 101.96 (38.2% Fib exp.)
- Resistance:103.75 (Mar 7 high)
The US Dollar edged lower against the Japanese Yen as expected after prices showed a bearish Evening Star candlestick pattern. Initial support remains at 102.65, the 23.6% Fibonacci expansion, with a daily close below this barrier clearing the way for a test of the 38.2% level at 101.96. Near-term resistance is still at 103.75, the March 7 high.
Risk/reward considerations continue to argue against taking a short position with prices trading in close proximity to relevant support. On the other hand, a long position taken on the assumption that support will necessarily hold seems premature without a defined reversal signal. 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.