USD/JPY Technical Analysis: Is a Bottom in the Works?
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- USD/JPY Technical Strategy: Flat
- Support: 106.50, 105.57, 104.50
- Resistance: 107.31, 108.63, 109.70
The US Dollar may be readying to resume its advance against the Japanese Yen after producing a bullish Morning Star candlestick pattern. Near-term resistance is at 107.31, the 23.6% Fibonacci retracement, with a break above that on a daily closing basis exposing the 38.2% level at 108.63. Alternatively, a turn back below the 14.6% Fib at 106.50 clears the way for a challenge of the 50% Fib retracement at 105.57.
The available trading range is too narrow to justify a trade on the long or short side from a risk/reward perspective. With that in mind, we will remain on the sidelines for now until a more attractive opportunity presents 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.