USD/JPY Technical Analysis: Rally Stalling Above 104.00 Level
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- USD/JPY Technical Strategy: Flat
- Support: 103.64, 103.15, 102.75
- Resistance: 104.14, 104.44, 105.19
The US Dollar is struggling to overcome resistance above the 104.00 figure against the Japanese Yen after launching aggressively higher last week. A daily close above the 38.2% Fibonacci expansion at 104.14 exposes the August 25 high at 104.44. Alternatively, a turn below the 23.6% Fib retracement at 103.64 opens the door for a challenge of the 38.2% threshold at 103.15.
Risk/reward considerations argue against entering long with prices in close proximity to resistance. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short side is premature. 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.