USD/JPY Technical Analysis: Resistance Sub-126 Targeted
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- USD/JPY Technical Strategy: Flat
- Support: 124.49, 123.04, 122.13
- Resistance: 125.95, 126.85, 127.58
The US Dollar is aiming above the 125.00 figure against the Japanese Yen after clearing yet another layer of chart resistance. A daily close above the 123.6% Fibonacci expansion at 125.95 exposes the 138.2% level at 126.85. Alternatively, a reversal below the 100% Fibat 124.49 opens the door for a challenge of the 76.4% expansion at 123.04.
A long position seems tempting from a purely technical perspective but we will tactically opt to remain on the sidelines. We suspect a focus on Federal Reserve policy expectations may weigh on the US Dollar this week, warning against taking long bets. As such, we will wait for the coast to clear before committing to a trade.
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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.