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.

Free Trading Guides
EUR/USD
Mixed
Oil - US Crude
Mixed
Wall Street
Bullish
Gold
Mixed
GBP/USD
Bullish
USD/JPY
Bullish
More View more
USD/JPY Technical Analysis: Treading Water Below 120.00

USD/JPY Technical Analysis: Treading Water Below 120.00

2015-02-20 02:57:00
Ilya Spivak, Head Strategist, APAC
Share:

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

Talking Points:

  • USD/JPY Technical Strategy: Flat
  • Support: 118.00, 117.17, 116.20
  • Resistance: 120.82, 121.91, 123.88

The US Dollar may be preparing to renew its push higher against the Japanese Yen after retesting a recently broken Triangle pattern top. Near-term resistance is at 120.82, the December 23 high, with a break above that on a daily closing basis exposing the 121.84-91 area (December 8 high, 38.2% Fibonacci expansion). Alternatively, a reversal below Triangle resistance-turned-support at 118.00 clears the way for a challenge ofthe January 21 low at 117.17.

While entering long seems compelling from a purely technical perspective, we will tactically opt to stand aside. USDJPY is highly sensitive to risk sentiment trends, making the pair vulnerable to volatility shocks amid continued uncertainty surrounding the Greek debt impasse. With that in mind, we will stand aside for now.

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

USD/JPY Technical Analysis: Treading Water Below 120.00

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.

DISCLOSURES

News & Analysis at your fingertips.