USD/JPY Technical Analysis: Yen Remains on the Defensive
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- USD/JPY Technical Strategy: Flat
- Support: 101.32, 101.12, 100.92
- Resistance: 101.47, 101.88, 102.25
The Japanese Yen remains under pressure as the US Dollar continues to rise after clearing key support-turned-resistance at 101.32, a barrier in play since February. Buyers are testing above falling trend line resistance at 101.47, with a break above that on a daily closing basis exposing downward-sloping channel top at 101.88. Alternatively, a move back below 101.32 opens the door for another challenge of the 38.2% Fibonacci expansion at 101.12.
Entering long seems premature absent confirmation of a break above resistance. On the other hand, taking up the short side lacks support from a defined bearish reversal signal. We will continue to stand aside for the time being.
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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.