USD/JPY Technical Analysis: Invalidating Triangle Breakout?
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- USD/JPY Technical Strategy: Flat
- Support: 118.81, 118.01, 116.76
- Resistance: 120.82, 121.91, 123.88
The US Dollar recoiled downward against the Japanese Yen after seemingly securing an upside breakout earlier in the week. A daily close below Triangle top resistance-turned-support at 118.81 exposes the top of a recently broken channel at 118.01. Alternatively, a push above the December 23 high at 120.82 opens the door for a test of the 121.84-91 zone (December 8 high, 38.2% Fibonacci expansion).
An actionable trade setup is absent at this point, arguing against committing to a directional bias on long or short side. We will continue to stand aside for now, waiting for a clear-cut trading opportunity to present itself in the days ahead.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com