USD/JPY Technical Analysis – Key Channel Support in Play
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- USD/JPY Technical Strategy: Flat
- Support: 101.65 (channel floor), 100.75 (Feb 4 low)
- Resistance: 102.84 (23.6% Fib exp.), 104.14 (38.2% Fib exp.)
The US Dollar is searching for direction against the Japanese Yen as prices hover above channel support set from early February. Initial resistance is at 102.84, the 23.6% Fibonacci expansion, with a break above that targeting the 38.2% level at 104.14. The channel bottom is now at 101.65, with a daily close below that initially exposing the February 4 low at 100.75.
Prices are too close to relevant support to justify a short position from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal warns against taking up the long side. With that in mind, we will remain flat for now.
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.