USD/JPY Technical Analysis: Edging Toward Range Support
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- USD/JPY Technical Strategy: Flat
- Support: 118.78, 118.02, 117.08
- Resistance: 120.01, 120.79, 121.55
The US Dollar is edging downward against the Japanese Yen, with prices eyeing range support below the 119.00 figure. Near-term support is at 118.78, the 50% Fibonacci retracement, with a break below that on a daily closing basis exposing the 61.8% level at 118.02. Alternatively, a turn above trend line resistance at 120.01 clears the way for a test of the 38.2% Fib expansion at 120.79.
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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.