USD/JPY Technical Analysis: Yen Drops Most in Five Months
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- USD/JPY Technical Strategy: Flat
- Support: 103.53, 103.05, 102.75
- Resistance: 104.00-12, 104.30, 104.54
The US Dollar launched aggressively higher against the Japanese Yen, recording the largest daily advance in five months. Near-term resistance is in the 104.00-12 area, marked by the 123.6% Fibonacci expansion and the April 4 swing high. A break above that on a daily closing basis exposes the 138.2% level at 104.30. Alternatively, a reversal below the 100% Fib at 103.53 clears the way for a test of the 76.4% expansion at 103.05.
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 suggests taking up the short side is premature. With that in mind 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.