USD/JPY Technical Analysis: Turn Lower May Be Ahead
To receive Ilya's analysis directly via email, please SIGN UP HERE
- USD/JPY Technical Strategy: Flat
- Support: 117.78, 116.96, 115.71
- Resistance: 119.05, 120.27, 121.79
The US Dollar is stalling against the Japanese Yen, with a Shooting Star candlestick warning that a top may be in the works. A daily close below rising channel floor support at 117.78 exposes the 14.6% level at 116.96. Alternatively, a push above the 50% Fib expansion at 119.05 clears the way for a challenge of the 61.8% threshold at 120.27.
Prices are too close to support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal suggests that taking up the long side is premature. With that in mind we will remain flat for now.
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