USD/JPY Technical Analysis: A Top in Place at 7-Year High?
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- USD/JPY Technical Strategy: Flat
- Support: 115.37, 113.85, 112.77
- Resistance: 116.30, 117.82, 119.05
The US Dollar may be preparing to turn lower after hitting a 7-year high against the Japanese Yen as negative RSI divergence signals ebbing upside momentum. A daily close below the 14.6% Fibonacci retracement at 115.31 exposes the 23.6% level at 114.24. Alternatively, a turn above the 23.6% Fib expansion at 116.30 clears the way for a challenge of the 38.2% threshold at 117.82.
The available trading range is too narrow to allow for a trade on the long or short side from a risk/reward perspective. We will continue to stand aside for the time being, waiting for a more compelling opportunity to present 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.