USD/JPY Technical Analysis: Bulls Trying to Breach 104.00
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- USD/JPY Technical Strategy: Flat
- Support: 102.86, 102.49, 102.00
- Resistance: 104.16, 105.21, 106.25
The US Dollar launched aggressively higher against the Japanese Yen, with prices touching the highest level in seven months. Near-term resistance is marked by the 38.2% Fibonacci expansion at 104.16. A break above that on a daily closing basis exposes the 50% level at 105.21. Alternatively, a reversal below the 23.6% Fib at 102.86 clears the way for a rising trend line set from mid-July, now at 102.49.
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.