USD/JPY Technical Analysis: July Highs Pressured Anew
To receive Ilya's analysis directly via email, please SIGN UP HERE
- USD/JPY Technical Strategy: Flat
- Support: 123.77, 123.13, 122.48
- Resistance: 124.55, 125.03, 125.51
The US Dollar is attempting to renew upside momentum against the Japanese Yen, with prices moving to test July’s highs once again. Near-term resistance is at 124.55, the 38.2% Fibonacci expansion, with a break above that on a daily closing basis exposing the 50% level at 125.03. Alternatively, a move below the 61.8% Fib retracement at 123.77 clears the way for a challenge of the 50% threshold at 123.13.
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