Monday, June 30, 2014

USD/JPY Technical Analysis ? Testing 5-Month Support Zone




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Talking Points:



  • USD/JPY Technical Strategy: Flat


  • Support: 101.32, 100.97, 100.38


  • Resistance: 101.94, 102.13-35, 102.71


The US Dollar is attempting to establish a near-term bottom after sliding to the weakest level in over a month against the Japanese Yen. The push downward ran into resistance at 101.32, the upper boundary of a support cluster in play since early February. A daily close below this barrier exposes the region’s lower bound at 100.97. The first layer of resistance is marked by the bottom of a recently broken rising channel, now at 101.96. A move above that clears the way for a challenge of the 102.13-35 area, bracketed by the May 27 and May 13 swing highs.



A defined bullish reversal signal is absent for the time being, hinting it is premature to assume support will hold and enter long. On the other hand, prices are too close to support to justify a short from a risk/reward perspective. We will remain flat.



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USD/JPY Technical Analysis – Testing 5-Month Support Zone


Daily Chart – Created Using FXCM Marketscope 2.0



— Written by Ilya Spivak, Currency Strategist for DailyFX.com





USD/JPY Technical Analysis ? Testing 5-Month Support Zone

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