USD/JPY Technical Analysis: Pivotal Support Under Pressure
To receive Ilya's analysis directly via email, please SIGN UP HERE
- USD/JPY Technical Strategy: Flat
- Support: 107.61, 106.58, 105.20
- Resistance: 109.65, 110.65, 112.40
The US Dollar pulled back from the 110.00 figure against the Japanese Yen to test a defining layer of chart support. A daily close below the 107.61-95 area marked by rising trend line resistance-turned-support and the 61.8% Fibonacci expansion exposes the 50% level at 106.58. Alternatively, a reversal above the 76.4% Fib at 109.65 clears the way for a challenge of the August 2008 high at 110.65.
Risk/reward considerations argue against entering short with prices in close proximity to support. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long side is premature. We will remain flat for now, waiting for a more actionable opportunity to present itself.
Add these technical levels directly to your charts with our Support/Resistance Wizard app!
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.