To receive Ilya's analysis directly via email, please SIGN UP HERE
Talking Points:
- USD/JPY Technical Strategy: Flat
- Support: 118.18, 118.01, 116.17
- Resistance: 120.82, 121.91, 123.88
The US Dollar is retesting recently pierced resistance against the Japanese Yen having seemingly manufactured a breakout last week. A daily close below Triangle top resistance-turned-support is at 118.18 exposes the January 21 low at 117.17. Alternatively, a move 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).
Risk/reward considerations argue against entering short with prices in close proximity to support. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long side is premature. We will remain flat for now, waiting for a more actionable opportunity to present itself.
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.com
