Tuesday, September 30, 2014

USD/JPY Technical Analysis: Aiming Above 110.00 Mark




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Talking Points:



  • USD/JPY Technical Strategy: Flat


  • Support: 109.47, 108.24, 107.38


  • Resistance: 110.22, 111.45, 112.44


The US Dollar has set its sights above the 110.00 figure against the Japanese Yen after breaching a trading range top. Near-term resistance is at 110.22, the 23.6% Fibonacci retracement, with a break above that on a daily closing basis exposing the 38.2% level at 111.45. Alternatively, a reversal below the 14.6% Fib at 109.47 clears the way for a test of the September 23 low at 108.24.



While entering long seems tempting, negative RSI divergence warns of ebbing upside momentum and hints a reversal downward may be around the corner. With that in mind, we will opt to remain on the sidelines for the time being.



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USD/JPY Technical Analysis: Aiming Above 110.00 Mark


Daily Chart – Created Using FXCM Marketscope 2.0



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





USD/JPY Technical Analysis: Aiming Above 110.00 Mark

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