USD/JPY Technical Analysis: Probing Above 122.00 Anew
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- USD/JPY Technical Strategy: Flat
- Support: 120.70, 119.48, 117.98
- Resistance: 121.91, 123.01, 124.08
The US Dollar is attempting to launch a recovery against the Japanese Yen having dropped to a two-month low. Near-term resistance is at 121.91, the 38.2% Fibonacci retracement, with a break above that on a daily closing basis exposing falling trend line resistance at 123.01. Alternatively, a turn below the 50% level at 120.70 clears the way for a challenge of the 61.8% Fib at 119.48.
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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--- Written by Ilya Spivak, Currency Strategist for DailyFX.com