To receive Ilya's analysis directly via email, please SIGN UP HERE
Talking Points:
- USD/JPY Technical Strategy: Flat
- Support: 120.16, 119.66, 118.93
- Resistance: 120.66, 121.44, 122.28
The US Dollar moved aggressively lower against the Japanese Yen, with prices threatening to overturn a two-month uptrend. A daily close below rising trend line support at 120.16 exposes the 38.2% Fibonacci retracement at 119.66. Alternatively, a push above support-turned-resistance at 120.66 opens the door for a test of a double top at 121.44.
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.
Add these technical levels directly to your charts with our Support/Resistance Wizard app!
Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
original source
