Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

Free Trading Guides
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
USD/JPY Technical Analysis: Passing on Triangle Breakout

USD/JPY Technical Analysis: Passing on Triangle Breakout

To receive Ilya's analysis directly via email, please SIGN UP HERE

Talking Points:

  • USD/JPY Technical Strategy: Flat
  • Support: 118.96, 118.10, 116.76
  • Resistance: 120.82, 121.91, 123.88

The US Dollar may be readying to resume its advance against the Japanese Yen after prices cleared resistance at the top of a two-month-old Triangle pattern. A daily close above the December 23 high at 120.82 exposes the 38.2% Fibonacci expansion at 121.91. Alternatively, a turn below Triangle top resistance-turned-support at 118.96 clears the way for a challenge of recently broken channel top at 118.10.

While entering long seems tempting, we will tactically opt to stand aside. A strong correlation between USDJPY and the S&P 500 stock index hints at a high sensitivity to sentiment trends. That makes a long trade vulnerable to the breakout of risk aversion if upcoming negotiations between Greece and the EU are unsuccessful. With that in mind, we will stand aside.

Add these technical levels directly to your charts with our Support/Resistance Wizard app!

Daily Chart - Created Using FXCM Marketscope

--- Written by Ilya Spivak, Currency Strategist for

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.