USD/JPY Technical Analysis – Upward Momentum Building
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- USD/JPY Technical Strategy: Flat
- Support: 102.10 (38.2% Fib exp.), 101.61 (23.6% Fib exp.)
- Resistance: 102.50 (50% Fib exp.), 102.90 (61.8% Fib exp.)
The US Dollar continued to move higher against the Japanese Yen having secured a foothold above the 102.00 figure. Prices are testing above the 50% Fibonacci expansion at 102.50, with break above that on a daily closing basis exposing the 61.8% level at 102.90. Near-term support is at 102.10, the 38.2% Fib. A reversal below that clears the way for a challenge of the 23.6% expansion at 101.61.
Risk/reward considerations argue against entering long with prices sitting squarely at resistance. On the other hand, taking up the short side seems premature absent a defined bearish reversal signal. 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.