USD/JPY Technical Analysis: Passing on Long Trade Setup
To receive Ilya's analysis directly via email, please SIGN UP HERE
- USD/JPY Technical Strategy: Flat
- Support: 118.71, 118.32, 117.52
- Resistance: 119.74, 120.68, 121.41
The US Dollar appears to have secured an upside breakout against the Japanese Yen after prices cleared resistance capping gains since mid-March. A daily close above the 38.2% Fibonacci expansion at 120.68 exposes the 50% level at 121.41. Alternatively, a reversal below trend line resistance-turned-support at 119.68 opens the door for a challenge of the April 3 lowat 118.71.
While entering a long trade seems compelling from a purely technical perspective, we are leery of committing to a directional bias ahead of this week’s pivotal event risk, where outcomes may significantly upset positioning. As such, we will opt to remain for now.
Add these technical levels directly to your charts with our Support/Resistance Wizard app!
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.