USD/JPY Technical Analysis – Yen Recovery Signaled Ahead
To receive Ilya's analysis directly via email, please SIGN UP HERE
- USD/JPY Technical Strategy: Flat
- Support: 102.30 (14.6% Fib exp.), 102.01 (23.6% Fib exp.)
- Resistance: 102.77 (June 4 high), 103.23 (trend line)
The US Dollar may be on the verge of a turn lower against the Japanese after prices put in a Bearish Engulfing candlestick pattern. Near-term support is at 102.30, the 14.6% Fibonacci expansion, with a break below that exposing the 23.6% level at 102.01. alternatively, a daily close above resistance at 102.77, the June 4 high, clears the way for a test of a falling trend line set from January, now at 103.23.
Risk/reward considerations argue against entering short with prices sitting squarely at support. On the other hand, taking up the long 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.