USD/JPY Technical Analysis: Channel Floor Under Pressure
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- USD/JPY Technical Strategy: Flat
- Support: 118.15, 116.96, 115.71
- Resistance: 119.05, 119.55, 120.27
The US Dollar may be on the verge of turning lower against the Japanese Yen following the appearance of a Shooting Star candlestick. Near-term channel floor support is at 118.15, with a break below that on a daily closing basis exposing the 14.6% level at 116.96. Alternatively, a reversal above the 50% Fib expansion at 119.05 opens the door for a test of the channel top at 119.55.
Confirmation of reversal requires a daily close below channel support, which remains absent for now. With that in mind, we will continue to wait on the sidelines for time being until an actionable trade setup presents itself.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com