USD/JPY Technical Analysis: December Low in the Crosshairs
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- USD/JPY Technical Strategy: Flat
- Support: 116.64, 115.48, 113.51
- Resistance: 117.91, 118.96, 120.82
The US Dollar declined for a fifth straight session against the Japanese Yen, with prices now within a hair of December’s swing bottom. Near-term support is at 115.48, the 38.2% Fibonacci retracement, with a break below that on a daily closing basis exposing the 50% level at 113.51. Alternatively, a reversal above the 23.6% retracement 117.91 opens the door for a test of the December 23 high at 120.82.
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.