USD/JPY Technical Analysis: Treading Water Below 121.00
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- USD/JPY Technical Strategy: Flat
- Support: 119.33, 117.17, 115.48
- Resistance: 120.82, 121.91, 123.88
The US Dollar continues to stall, with prices oscillating below the 121.00 figure against the Japanese Yen. Near-term resistance is at 120.82, the December 23 high, with a break above that on a daily closing basis exposing 121.91 (December 8 high, 38.2% Fibonacci expansion). Alternatively, a push below rising channel floor support at 119.33 clears the way for a challenge ofthe January 21 low at 117.17.
Positioning is inconclusive at this point. On one hand, follow-through on the bearish reversal has failed to materialize. On the other, the Engulfing pattern setup has not been technically invalidated. We will stand aside for now, waiting for greater clarity to emerge before committing to a directional bias.
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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.