USD/JPY Technical Analysis: Waiting for Direction Trigger
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- USD/JPY Technical Strategy: Flat
- Support: 117.43, 116.96, 116.37
- Resistance: 118.86, 120.82, 121.84
The US Dollar continues to consolidate below the 119.00 figure against the Japanese Yen having attempted to launch a recovery as expected. Near-term resistance is at 118.86, the January 20 high, with a break above that on a daily closing basis exposing the December 23 top at 120.82. Alternatively, a reversal below range support at 117.43 opens the door for a test of the 38.2% Fibonacci expansion at 116.96.
Positioning is inconclusive at this point, with prices offering no clear-cut and actionable signal to initiate a long or short trade. We will continue to remain on the sidelines for the time being, waiting for a compelling opportunity to present itself.
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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.