USD/JPY Technical Analysis: Marking Time at 2-Month High
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- USD/JPY Technical Strategy: Flat
- Support: 123.78, 123.29, 122.49
- Resistance: 124.57, 125.85, 126.65
The US Dollar paused to consolidate gains after hitting the highest level in nearly two months against the Japanese Yen. Near-term resistance is at 124.57, the July 30 high, with a break above that on a daily closing basis exposing June 5 top at 125.85. Alternatively, a move below the 14.6% Fibonacci expansion at 123.78 clears the way for a challenge of the 23.6% level at 123.29.
Risk/reward considerations argue against entering short with prices in close proximity to support. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long 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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.