USD/JPY Technical Analysis: Top Set Below 126.00 Figure?
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- USD/JPY Technical Strategy: Flat
- Support: 124.20, 123.18, 122.36
- Resistance: 124.83, 125.85, 126.80
The US Dollar declined against the Japanese Yen as expected, with a bearish Dark Cloud Cover candlestick pattern now hinting at further losses ahead. Near-term support is at 124.20, the 23.6% Fibonacci retracement, with a break below that on a daily closing basis exposing the 38.2% level at 123.18. Alternatively, a turn above the 14.6% Fibat 124.83 clears the way for a challenge of the June 5 high at 125.85.
The available trading range is too narrow to justify entering a trade on the long or short side from a risk/reward perspective. With that in mind, we will remain flat for now, waiting for price action to offer a more compelling opportunity down the road.
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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.