USD/JPY Technical Analysis: Yen Drops Most in 7 Weeks
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- USD/JPY Technical Strategy: Flat
- Support: 119.78, 118.93, 118.20
- Resistance: 120.68, 121.41, 122.13
The US Dollar issued the largest daily advance in seven weeks against the Japanese Yen after finding support above the 119.00 figure. A daily close above the intersection of trend line support-turned-resistance and the 38.2% Fibonacci expansion at 120.68 exposes the 50% level at 121.41. Alternatively, a reversal below the 23.6% Fib at 119.78 opens the door for a challenge of the 50% Fib retracement at 118.93.
An actionable trade setup is absent at this point, arguing against committing to a directional bias on long or short side. We will continue to stand aside for now, waiting for a clear-cut trading opportunity to present itself in the days ahead.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com