USD/JPY Technical Analysis: Rejected at Channel Top
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- USD/JPY Technical Strategy: Flat
- Support: 119.66, 118.93, 118.20
- Resistance: 120.04, 120.68, 121.41
The US Dollar turned lower anew after finding resistance above the 120.00 figure against the Japanese Yen. A break below the 50% Fibonacci retracement at 118.93 exposes the 61.8% level at 118.20. Alternatively, a reversal above the intersection of channel resistance and the 38.2% Fib at 119.66 opens the door for a challenge of the 23.6% retracement at 120.56.
Prices are too close to support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal suggests that taking up the long 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