USD/JPY Technical Analysis: Eyeing Support Below 107.00
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- USD/JPY Technical Strategy: Flat
- Support: 106.63, 105.57, 104.50
- Resistance: 107.95, 108.76, 110.08
The US Dollar sank to the lowest level in a month against the Japanese Yen, with sellers aiming at support below the 107.00 level. Near-term support is at 106.63, the 38.2% Fibonacci retracement, with a break below that on a daily closing basis exposing the 50% level at 105.57. Alternatively, a reversal above the 23.6% Fib at 107.95 clears the way for a challenge of the 14.6% retracement at 108.76.
Prices have not confirmed the break below trend line support set from May 2013 on a daily closing basis, suggesting entering short is premature for now. On the other hand, a defined bullish reversal signal needed for a long trade is absent. As such, we will stay flat for now.
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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.