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Forex: USD/JPY Technical Analysis – Yen Recovers as Expected

Forex: USD/JPY Technical Analysis – Yen Recovers as Expected

Ilya Spivak, Head Strategist, APAC

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Talking Points:

  • USD/JPY Technical Strategy: Flat
  • Support: 101.41 (50% Fib exp., trend line), 100.86 (61.8% Fib exp.)
  • Resistance:101.96 (38.2% Fib exp.), 102.65 (23.6% Fib exp.)

The US Dollar moved aggressively lower against the Japanese Yen as expected after the pair produced a bearish Evening Star candlestick pattern. Prices are approaching support at 101.41, the intersection of a rising trend line set from early February and the 50% Fibonacci expansion. A break below this barrier targets the 61.8% level at 100.86. Alternatively, a reversal back above the 38.2% Fib at 101.96 aims for the 23.6% expansion at 102.65.

Prices are too close to relevant support to justify a short position from a risk/reward perspective. On the other hand, a viable reversal signal arguing in favor of a long trade is absent for the time being.We will remain on the sidelines until a more actionable setup presents itself.

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dailyclassics_usd-jpy_body_Picture_10.png, Forex: USD/JPY Technical Analysis – Yen Recovers as Expected

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.

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