USD/JPY Technical Analysis: Opting to Pass on Long Trade
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- USD/JPY Technical Strategy: Flat
- Support: 125.20, 124.64, 123.74
- Resistance: 126.10, 126.83, 127.55
The US Dollar resumed its advance against the Japanese Yen, rising to the highest level in 13 years. A daily close above the 38.2% Fibonacci expansion at 126.10 exposes the 50% level at 126.83. Alternatively, a reversal below the 23.6% Fibat 125.20 opens the door for a challenge of the 14.6% expansion at 124.64.
Negative RSI divergence warns of ebbing upside momentum and hints a reversal downward may be in the cards ahead, arguing against taking a long position. With that in mind, we will remain on the sidelines for now and wait for a more compelling opportunity to present itself.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com