USD/JPY Technical Analysis – A Top in Place Below 103.00?
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- USD/JPY Technical Strategy: Flat
- Support: 102.30 (14.6% Fib exp.), 102.01 (23.6% Fib exp.)
- Resistance: 102.77 (June 4 high), 103.19 (trend line)
The US Dollar may be preparing to move downward against the Japanese after prices put in a Bearish Engulfing candlestick pattern. A daily close below support is at 102.30, the 14.6% Fibonacci expansion, targets the 23.6% level at 102.01. Near-term resistance at 102.77, the June 4 high, with a reversal above that opening the door for a challenge of a falling trend line set from January, now at 103.19.
Prices are too close to support to justify a short position from a risk/reward perspective. On the other hand, the absence of a confirmed bullish reversal signal warns against taking up the long side. Wewill 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.