USD/JPY Technical Analysis: 2-Month Downtrend Broken?
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- USD/JPY Technical Strategy: Flat
- Support: 101.81, 101.52, 101.06
- Resistance:102.04, 102.25-28, 102.57
The US Dollar may be set to extend its move higher against the Japanese Yen after prices broke resistance at the top of a falling channel top set from early June. The bulls now aim to challenge the 50%Fibonacci expansion at 102.04, with a break above that exposing the 102.25-28 area marked by the May 13 close and the 61.8% level. Alternatively, a reversal back below the 38.2% Fib at 101.81 opens the door for a challenge of the 23.6% expansion at 101.52.
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.