USD/JPY Technical Analysis: Former Resistance in Focus
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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 is working on a third day of losses against the Japanese Yen after recoiling from resistance below the 121.00 figure. Near-term Triangle top resistance-turned-support is at 118.28, with a break below that on a daily closing basis exposing the January 21 low at 117.17. Alternatively, a move above the December 23 high at 120.82 clears the way for a challenge of the 121.84-91 zone (December 8 high, 38.2% Fibonacci expansion).
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