Skip to content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
Oil - US Crude
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
USD/JPY Technical Analysis: Downward Correction Resuming?

USD/JPY Technical Analysis: Downward Correction Resuming?

Ilya Spivak, Head Strategist, APAC

To receive Ilya's analysis directly via email, please SIGN UP HERE

Talking Points:

  • USD/JPY Technical Strategy: Flat
  • Sellers Retake Initiative After Prices Retest Broken Trend Line
  • Waiting for Correction Lower to Yield Long Trade Opportunity

The US Dollar is once again on the defensive against the Japanese Yen, with sellers reclaiming a foothold below the 120.00 figure. Prices swiftly recovered after dropping to within a hair of the 116.00 mark last week having plowed through trend line support set from mid-January. That bounce now appears corrective, with the pair seemingly resuming the nascent down trend after retesting support-turned-resistance.

Prices are attempting an intraday recovery to test the 14.6% Fibonacci expansion at 120.39, with a break back above this barrier on a daily closing basis exposing the August 28 high at 121.73. Alternatively, a move back below the 23.6% Fib at 119.56 opens the door for a challenge of the 38.2% expansion at 118.21.

Positioning is inconclusive at this point. The velocity of the rebound following the break below of 120.00 casts doubt on near-term downside follow-through, taking the pair back through immediate support-turned-resistance (119.56). Furthermore, the long-term uptrend set from September 2012 remains in play, suggesting current weakness is corrective. With that in mind, we will stand aside and wait for a buying opportunity to present itself after current volatility to plays itself out.

Add these technical levels directly to your charts with our Support/Resistance Wizard app!

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.