USD/JPY Technical Analysis: Yen Sinks to Lowest in 6 Years
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- USD/JPY Technical Strategy: Flat
- Support: 105.77, 105.43, 104.87
- Resistance: 106.44, 106.99, 107.54
The US Dollar surged to a six-year high against the Japanese Yen, with prices securing a foothold above the 106.00 figure. Near-term resistance is at 106.44, the 38.2% Fibonacci expansion, with a break above that on a daily closing basis exposing the 50% level at 106.99. Alternatively, a reversal below the 23.6% Fib at 105.77 opens the door for a challenge of the January swing high at 105.43, followed by a rising trend line at 104.87.
Negative RSI divergence warns of ebbing bullish momentum and argues against entering long. 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 on the sidelines for the time being.
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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.