USD/JPY Technical Analysis – Attempting to Extend Decline
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- USD/JPY Technical Strategy: Flat
- Support: 101.32, 100.97, 100.38
- Resistance: 101.94, 102.13-35, 102.71
The Japanese Yen is aiming to extend its march higher against the US Dollar as USD/JPY tests a support cluster in play since early February. A break below 101.32 on a daily closing basis targets the outer layer of range support at 100.97. Falling channel bottom support-turned-resistance is now at 101.94, with a reversal above that opening the door for a challenge of the May 27 high at 102.13.
Prices are too close to near-term support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal suggesting a long position is premature. On balance, we will remain on the sidelines for now.
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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.