USD/JPY Technical Analysis: Two-Month Uptrend Challenged
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- USD/JPY Technical Strategy: Flat
- Support: 120.16, 119.66, 118.93
- Resistance: 120.66, 121.44, 122.28
The US Dollar moved aggressively lower against the Japanese Yen, with prices threatening to overturn a two-month uptrend. A daily close below rising trend line support at 120.16 exposes the 38.2% Fibonacci retracement at 119.66. Alternatively, a push above support-turned-resistance at 120.66 opens the door for a test of a double top at 121.44.
Prices are too close to resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal suggests that taking up the short side is premature. With that in mind, we will remain flat for now.
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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.