USD/JPY Technical Analysis – Buyers Retake 102.00 Mark
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- USD/JPY Technical Strategy: Flat
- Support: 102.06 (23.6% Fib exp.), 101.70 (channel floor)
- Resistance: 102.35 (38.2% Fib exp.), 102.58 (50% Fib exp.)
The US Dollar is edging higher against the Japanese Yen after prices put in a bullish Piercing Line candlestick pattern. A break above resistance at 102.06, the 23.6% Fibonacci expansion, has exposing the 38.2% level at 102.35. Moving further beyond that targets the 50% Fib at 102.58. The 102.06 mark has been recast as near-term support. A reversal back below that clears the way for a retest of rising channel support set from mid-May, now at 101.70.
The available trading range is too narrow to justify a trade on the long or short side from a risk/reward perspective. We will remain on the sidelines for now, waiting for a more actionable opportunity to present itself.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com