Forex: USD/JPY Technical Analysis – Long Trade Setup Sought
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- USD/JPY Technical Strategy: Pending Long
- Support: 101.40 (Triangle floor)
- Resistance:102.62 (Feb 11 close), 102.84 (Triangle top), 103.75-104.14 (Mar 7 high, 38.2% Fib exp.)
An expected US Dollar rebound against the Japanese Yen is stalling below resistance at 1.0262, a horizontal pivot in play since mid-February. Overall positioning suggests that prices are carving out a Triangle chart formation, a setup typically indicative of trend continuation (which carries upside implications in this case).
We will wait for a daily close above the pattern’s upside boundary (now at 102.84) to position for a long position initially targeting the March 7 high at 103.75, followed by the 38.2% Fibonacci expansion at 104.13. Support at the Triangle floor is now at 101.42.
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.