USD/JPY Technical Analysis: Prices Advance to 6-Month High
To receive Ilya's analysis directly via email, please SIGN UP HERE
- USD/JPY Technical Strategy: Flat
- Support: 104.04, 103.64, 103.15
- Resistance: 104.34-44, 104.84, 105.24
The US Dollar has set a six-month high against the Japanese Yen as prices work their way toward the 105.00 figure. Near-term resistance is in the 10434-44 area, marked by the 23.6% Fibonacci expansion and the August 25 high. A break above that on a daily closing basis exposes the 38.2% level at 104.84. Alternatively, a reversal below the 14.6% expansion at 104.04 clears the way for a test of the 23.6% Fib retracement at 103.64.
While prices are testing above resistance, a defined breakout is unconfirmed for now. That suggests entering long at market is premature. On the other hand, fading the rally requires the appearance of a bearish reversal signal. Needless to say, this is absent at the moment. We will continue to watch from the sidelines.
Add these technical levels directly to your charts with our Support/Resistance Wizard app!
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.