USD/JPY Technical Analysis: Aiming Above 110.00 Mark
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- USD/JPY Technical Strategy: Flat
- Support: 109.47, 108.24, 107.38
- Resistance: 110.22, 111.45, 112.44
The US Dollar has set its sights above the 110.00 figure against the Japanese Yen after breaching a trading range top. Near-term resistance is at 110.22, the 23.6% Fibonacci retracement, with a break above that on a daily closing basis exposing the 38.2% level at 111.45. Alternatively, a reversal below the 14.6% Fib at 109.47 clears the way for a test of the September 23 low at 108.24.
While entering long seems tempting, negative RSI divergence warns of ebbing upside momentum and hints a reversal downward may be around the corner. With that in mind, we will opt to 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