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Talking Points:
- USD/JPY Technical Strategy: Flat
- Support: 104.84, 104.34-44, 104.04
- Resistance: 105.24, 105.43, 105.64
The US Dollar continues to push aggressively higher against the Japanese Yen, with prices on pace to revisit year-to-date highs. A daily close above the 50% Fibonacci expansion at 105.24 exposes the January 2 high at 105.43, followed by the 61.8% level at 105.64. Alternatively, a turn below the 38.2% Fib at 104.84 opens the door for a challenge of the 10434-44 area marked by the August 25 high and the 23.6% expansion.
Risk/reward considerations argue against entering long with prices in close proximity to resistance. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short side is premature. We will remain flat for now.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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