Forex: USD/JPY Technical Analysis – Resistance Above 104.00 Tested
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- USD/JPY Technical Strategy: Long at 102.82
- Support:103.75 (Mar 7 high), 103.00, 102. 62 (Triangle top)
- Resistance: 104.14 (38.2% Fib exp.), 105.19 (50% Fib exp.)
The US Dollar advanced for a fifth consecutive day against the Japanese Yen having launched higher as expected after carving out a Triangle chart pattern. Prices are now testing resistance at 104.14, the 38.2% Fibonacci expansion, with a break above that targeting the 50% level at 105.19. Alternatively, a turn back below the May 7 high at 103.75 (now recast as support) aims for the 103.00 figure, followed by a horizontal pivot at 102.62. We booked partial profits on a long position from 102.82 earlier this week and continue to hold half of the trade with a stop adjusted to the breakeven level.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com