USD/JPY Technical Analysis: Candle Setup Hints at Decline
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- USD/JPY Technical Strategy: Flat
- Support: 123.80, 123.01, 122.36
- Resistance: 124.29, 125.09, 125.85
The US Dollar put in a bearish Evening Star candlestick pattern, hinting a move lower against the Japanese Yen may be ahead. A daily close below the 23.6% Fibonacci expansion at 123.80 exposes the 38.2% level at 123.01. Alternatively, a move above the 14.6% Fib at 124.29 opens the door for a test of the August 7 high at 125.09.
The available trading range is too narrow to justify entering a trade on the long or short side from a risk/reward perspective. With that in mind, we will remain flat for now, waiting for price action to offer a more compelling opportunity down the road.
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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.