USD/JPY Technical Analysis: Pullback Gathering Momentum
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- USD/JPY Technical Strategy: Flat
- Support: 119.41, 117.91, 115.48
- Resistance: 122.49, 124.12, 125.74
The US Dollar is declined expected against Japanese Yen, breaking the rising trend carved out since early November. Near-term support is at 117.91, the 23.6% Fibonacci retracement, with a break below that on a daily closing basis exposing the 38.2% level at 115.48. Alternatively, a turn above the intersection of trend line support-turned-resistance and the 14.6% Fib at 119.41 opens the door for a challenge of the December 8 high at 121.84.
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.
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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.