USD/JPY Technical Analysis: March Top Under Pressure
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- USD/JPY Technical Strategy: Flat
- Support:120.79, 119.91, 118.83
- Resistance:121.55, 122.31, 123.26
The US Dollar stalled near the 122.00 figure against the Japanese Yen having extended to the highest level in nearly three months. Near-term resistance is at 121.55, the 50% Fibonacci expansion, with a break above that on a daily closing basis exposing the 61.8% level at 122.31. Alternatively, a turn below the 38.2% Fibat 120.79 clears the way for a test of trend line resistance-turned-support at 119.91.
Risk/reward considerations argue against entering long with prices in close proximity to resistance. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short 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.