USD/JPY Technical Analysis: Waiting for Fuel Below 102.00
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- USD/JPY Technical Strategy: Flat
- Support: 101.52, 101.06, 100.81
- Resistance: 101.81, 102.04, 102.25-28
The US Dollar is stalling after hitting a three-week high below the 102.00 figure against the Japanese Yen. Near-term resistance is at 101.81, the intersection of the 38.2% Fibonacci expansion and a falling channel top set from early June. A daily close above that initially exposes the 50% level at 102.04. Alternatively, a turn below the 23.6% Fib at 101.52 clears the way for a test of 101.06, the July 10 low.
Prices are too close to resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal argues against taking up the short side. We will remain flat 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.