USD/JPY Technical Analysis: Probing Above 124.00 Figure

To receive Ilya's analysis directly via email, please SIGN UP HERE

Talking Points:

• USD/JPY Technical Strategy: Flat
• Support: 123.59, 123.00, 122.20
• Resistance: 123.96, 124.55, 125.03

The US Dollar extended its recovery against the Japanese Yen for a second consecutive day, with buyers probing above the 124.00 figure. Near-term resistance is at 123.96, the 23.6% Fibonacci expansion, with a break above that on a daily closing basis exposing the 38.2% level at 124.55. Alternatively, a move below the 14.6% Fib at 123.59 clears the way for a challenge of the July 27 low at 123.00.

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.

Add these technical levels directly to your charts with our Support/Resistance Wizard app!

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com