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Talking Points:
- USD/JPY Technical Strategy: Flat
- Support: 115.37, 113.85, 112.77
- Resistance: 116.30, 117.82, 119.05
The US Dollar may be gearing up for a downturn against the Japanese Yen, with prices forming a Harami candlestick pattern coupled with negative RSI divergence. Near-term support is at 114.50, the 14.6% Fibonacci retracement, with a break below that on a daily closing basis exposing the 23.6% level at 113.52. Alternatively, a reversal above the 23.6% Fib expansion at 116.30 opens the door for a test of the 38.2% threshold at 117.82.
By itself, a Harami pattern is insufficiently actionable even with RSI divergence absent further confirmation. With that in mind, we will remain flat for now until a more compelling opportunity presents itself.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
