USD/JPY Technical Analysis: Pullback Clues Emerge Again
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- USD/JPY Technical Strategy: Flat
- Support: 119.24, 117.23, 116.25
- Resistance: 120.48, 122.49, 124.12
The US Dollar stalled against the Japanese Yen after prices tested the closely-watched psychological 120.00 threshold. Near-term resistance is at 120.48, the 23.6% Fibonacci retracement, with a break above that on a daily closing basis exposing the 38.2% level at 122.49. Alternatively, a turn below the 14.6% Fib at 119.24 opens the door for a challenge of the November 27 low at 117.23.
A Doji candlestick points to indecision while negative RSI divergence hints at ebbing upside momentum. Both clues point to a possible reversal downward reversal ahead, but substantive confirmation is absent for the time being. We will continue to stand aside, waiting for an actionable selling opportunity.
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Daily Chart - Created Using FXCM Marketscope
--- 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.