USD/JPY Technical Analysis: Resistance Now Above 125.00
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- USD/JPY Technical Strategy: Flat
- Support: 124.17, 123.28, 122.18
- Resistance: 125.05, 126.15, 127.93
The US Dollar continued to push upward against the Japanese Yen, advancing to the highest level in two months. A daily close above the 61.8% Fibonacci expansion at 125.05 exposes the 125.85-126.15 area (June 5 high, 76.4% level). Alternatively, a turn back below the 50% Fib at 124.17 opens the door for a test of the 38.2% expansion at 123.28.
Prices are too close to resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal suggests that taking up the short side is premature. With that in mind, we will remain flat for now.
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--- Written by Ilya Spivak, Currency Strategist for DailyFX.com