USD/JPY Technical Analysis: Resistance Now Above 109.00
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- USD/JPY Technical Strategy: Flat
- Support: 108.35, 107.76, 106.80
- Resistance: 109.31, 110.09, 110.86
The US Dollar continues to race higher against the Japanese Yen, with prices now poised to move above the 109.00 figure. Near-term resistance is at 109.31, the 38.2% Fibonacci expansion, with a break above that on a daily closing basis exposing the 50% level at 110.09. Alternatively, a turn below the 23.6% Fib at 108.35 clears the way for a test of the 14.6% expansion at 107.76.
Risk/reward considerations argue against entering longas prices hover just at 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, waiting for a more actionable opportunity to present itself.
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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.