USD/JPY Technical Analysis: Major Reversal in Progress?
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- USD/JPY Technical Strategy: Flat
- Support: 101.12, 100.92, 100.71-75
- Resistance: 101.32, 101.78, 102.25
The Japanese Yen may be positioning for a larger recovery against the US Dollar after clearing a major technical barrier. A break below 101.32, the intersection of a horizontal support shelf and a Triangle pattern bottom, both dating back to early February, hints at a sizable bearish reversal in the works. A daily close below 101.12, the 38.2% Fibonacci expansion, exposes the 50% level at 100.92. Alternatively, a move back above 101.32 initially targets the July 16 high at 101.78.
The available trading range is too narrow to justify a trade on the long or short side from a risk/reward perspective. We will continue to stand aside for now, waiting for an actionable trade setup to emerge.
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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.