USD/JPY Technical Analysis: Eyeing Resistance Above 124.00
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- USD/JPY Technical Strategy: Flat
- Support: 123.04, 122.13, 121.41
- Resistance: 124.49, 125.95, 126.85
The US Dollar continued to press higher against the Japanese Yen, with prices poised to extend above the 124.00 figure. Near-term resistance is at 124.49, the 100% Fibonacci expansion, with a break above that on a daily closing basis exposing the 123.6% level at 125.95. Alternatively, a turn below the 76.4% Fibat 123.04 clears the way for a test of the 61.8% expansion at 122.13.
While entering long seems tempting from a purely technical perspective, we are leery of committing to long-USD exposure ahead of the upcoming revision of first-quarter GDP figures. The latest round of USD strength doesn’t appear rooted in improving Fed policy bets and may unravel if a downside revision pushes out the projected rate hike timeline. With that in mind, we will remain on the sidelines.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com