USD/JPY Technical Analysis: Yen Rallies Most in Two Weeks
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- USD/JPY Technical Strategy: Flat
- Support: 119.41, 117.91, 115.48
- Resistance: 120.82, 121.91, 123.88
The US Dollar recoiled downward against the Japanese Yen, recording the largest daily decline in two weeks. Near-term support is at 119.41, the 14.6% Fibonacci retracement, with a break below that on a daily closing basis exposing the 23.6% level at 117.91. Alternatively, a reversal above the December 23 high at 120.82 opens the door for a challenge of the 38.2% Fib expansion at 121.91.
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.