USD/JPY Technical Analysis: Consolidating Near 119.00
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- USD/JPY Technical Strategy: Flat
- Support: 118.93, 118.20, 117.30
- Resistance: 119.66, 120.82, 121.84
The US Dollar may be building a larger downward reversal against the Japanese Yen after prices overturning a two-month uptrend. Near-term support is at 118.93, the 50% Fibonacci retracement, with a break below that on a daily closing basis exposing the 61.8% level at 118.20. Alternatively, a turn above the 38.2% Fib at 119.66 clears the way for a test of 120.82 (trend line support-turned-resistance, December 23 high).
The available trading range is too narrow to justify entering a trade on the long or short side from a risk/reward perspective. With that in mind, we will remain flat for now, waiting for price action to offer a more compelling opportunity down the road.
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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.