USD/JPY Technical Analysis: Resistance Above 121 Pressured
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- USD/JPY Technical Strategy: Flat
- Support: 120.68, 119.98, 118.83
- Resistance: 121.41, 122.13, 123.04
The US Dollar continued to press higher against the Japanese Yen, completing the fourth consecutive daily advance. A daily close above the 50% Fibonacci expansion at 121.41 exposes the 61.8% level at 122.13. Alternatively, a move back below the 38.2% Fib at 120.68 opens the door for a challenge of trend line resistance-turned-support at 119.98.
Prices are too close to resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal suggests that taking up the short 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