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Talking Points:
- USD/JPY Technical Strategy: Flat
- Support: 104.60, 104.23, 103.62
- Resistance: 105.23-39, 105.79, 106.28
The US Dollar faltered after testing the 2014 closing high against the Japanese Yen, pulling back to trend line support. This barrier is reinforced by the 14.6% Fibonacci retracement at 104.60, with a break below that on a daily closing basis exposing the 23.6% level at 104.23. Alternatively, a push through resistance in the 105.23-39 area clears the way for a test of the 61.8% level at 105.79.
Prices are too close to support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long 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
