Monday, September 29, 2014

USD/JPY Technical Analysis: Rally Stalling Above 109.00




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Talking Points:



  • USD/JPY Technical Strategy: Flat


  • Support: 108.24, 107.38, 106.80


  • Resistance: 109.47, 110.22, 111.45


The US Dollar is treading water as prices remain locked in a well-established range below the 110.00 figure against the Japanese Yen. A daily close above the 14.6% Fibonacci retracementat 109.47 exposes the 23.6% level at 110.22. Alternatively, a turn back below the September 23 low at 108.24 opens the door for a challenge of the September 12 high at 107.38.



Risk/reward considerations argue against entering long as prices sit squarely at 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, waiting for a more actionable opportunity to present itself.



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USD/JPY Technical Analysis: Rally Stalling Above 109.00


Daily Chart – Created Using FXCM Marketscope 2.0



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





USD/JPY Technical Analysis: Rally Stalling Above 109.00

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