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Talking Points:
- USD/JPY Technical Strategy: Flat
- Support: 119.30, 118.78, 118.02
- Resistance: 120.79, 121.55, 122.31
The US Dollar found interim support after three consecutive days of losses against the Japanese Yen saw prices lose their grip on the 120.00 figure. A daily close above the 38.2% Fibonacci expansion at 120.79 exposes the 50% level at 121.55. Alternatively, a reversal below trend line resistance-turned-support at 119.30 opens the door for a challenge of the 50% Fib retracement at 118.78.
Risk/reward considerations argue against entering short with prices in close proximity to support. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long side is premature. We will remain flat for now, waiting for an actionable opportunity to present itself.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
