USD/JPY Technical Analysis – Yen Slumps to 1-Month Low
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- USD/JPY Technical Strategy: Flat
- Support: 102.50 (50% Fib exp.), 102.10 (38.2% Fib exp.)
- Resistance: 102.90 (61.8% Fib exp.), 103.23-39 (trend line, 76.4% Fib exp.)
The US Dollar rose for a third consecutive day, setting a new one-month high against the Japanese Yen. A daily close above resistance at 102.90, the 61.8% Fibonacci expansion, exposes 103.23-39 area marked by a falling trend line set from late December and the 76.4% level. Alternatively, a reversal back below the 50% Fib at 102.50 opens the door for a challenge of the 38.2% expansion at 102.10.
The available trading range is too narrow to justify a trade on the long or the short side from a risk/reward perspective. With that in mind, we will remain on the sidelines and wait 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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.