USD/JPY Technical Analysis: Battering Range Floor Support
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- USD/JPY Technical Strategy: Flat
- Support: 107.89, 106.54, 105.45
- Resistance: 109.93, 110.65, 111.54
The US Dollar is testing below the bottom of a now-familiar choppy range against the Japanese Yen. Near-term support at 107.89, the 23.6% Fibonacci retracement, with a break below that on a daily closing basis exposing the 38.2% level at 106.54. Alternatively, a move above the 23.6% Fib expansion at 109.93 opens the door for a test of the August 2008 high at 110.65.
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