USD/JPY Technical Analysis – Candle Setup Hints at Rebound
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- USD/JPY Technical Strategy: Flat
- Support: 101.48 (channel floor), 100.75 (Feb 4 low)
- Resistance: 102.11 (23.6% Fib exp.), 102.60 (38.2% Fib exp.)
The US Dollar may be starting to launch a rebound against the Japanese Yen after prices completed a bullish Morning Star candlestick pattern at support marked by the bottom of a rising channel set from early February. Initial resistance is at 102.11, the 23.6% Fibonacci expansion, with a break above that exposing the 38.2% level at 102.60. Alternatively, a reversal below the channel floor (now at 101.48) aims for the February 4 low at 100.75.
Risk/reward considerations argue against entering a long position with prices trading just at resistance. We will remain flat for now, waiting for a more attractive opportunity to present itself.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com