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- USD/JPY Technical Strategy: Flat
- Support: 102.11 (23.6% Fib exp.), 101.55 (channel floor)
- Resistance: 102.60 (38.2% Fib exp.), 103.00 (50% Fib exp.)
The US Dollar continues to probe higher against the Japanese Yen having rebounded as expected after forming bullish Morning Star candlestick pattern. Buyers are testing resistance marked by the 38.2% Fibonacci expansion at 102.60, with a daily close above this barrier exposing the 50% level at 103.00. Alternatively, a turn back below the 38.2% Fib at 102.11 targets the bottom of a channel set from early February, now at 101.55.
Risk/reward considerations argue against taking a long position with prices trading so close to relevant resistance. We will remain flat for the time being, waiting for a more attractive setup to present itself.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com