USD/JPY Technical Analysis: Rally Extends to 4-Month High
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- USD/JPY Technical Strategy: Flat
- Support: 102.71, 102.45, 102.25
- Resistance: 103.03, 103.50, 103.79
The US Dollar may have completed a major upward breakout against Japanese Yen after prices cleared resistance capping gains since January. The bulls now aim to challenge the 100%Fibonacci expansion at 103.03, with a break above that on a daily closing basis exposing the 123.6% level at 103.50. Alternatively, a reversal back below resistance-turned-support at 102.71 – the April 22 high – opens the door for a retest of the broken trend line (now at 102.45).
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.