Wednesday, August 27, 2014

USD/JPY Technical Analysis: Weakness Signaled Below 105.00




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



Talking Points:



  • USD/JPY Technical Strategy: Flat


  • Support: 103.64, 103.15, 102.75


  • Resistance: 104.14, 104.44, 105.19


The US Dollar appears vulnerable to a reversal downward against the Japanese Yen prices put in a bearish Evening Star candlestick pattern. A daily close below the 23.6% Fibonacci retracement at 103.64 exposes the 38.2% level at 103.15. Alternatively, a turn above the 23.6% Fib expansion at 104.14 opens the door for a challenge of the August 25 high at 104.44.



Risk/reward considerations argue against entering short with prices in close proximity to support. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long side is premature. We will remain flat for now.



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


USD/JPY Technical Analysis: Weakness Signaled Below 105.00


Daily Chart – Created Using FXCM Marketscope 2.0



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





USD/JPY Technical Analysis: Weakness Signaled Below 105.00

No comments:

Post a Comment