USD/JPY Technical Analysis: Waiting for Directional Spark
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- USD/JPY Technical Strategy: Flat
- Support: 124.12, 123.41, 122.84
- Resistance: 124.56, 125.27, 125.85
The US Dollar is marking time against the Japanese Yen after recording the largest daily decline in a month last week. A daily closing below the 23.6% Fibonacci retracementat 124.12 exposes the 38.2% level at 123.41. Alternatively, a move above the 14.6% Fib at 124.56 opens the door for a challenge of the August 12 high at 125.27.
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.