Sunday, November 30, 2014

USD/JPY Technical Analysis: Buyers Threaten 119.00 Anew




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Talking Points:



  • USD/JPY Technical Strategy: Flat


  • Support: 116.96, 115.71, 113.70


  • Resistance: 119.24, 120.48, 122.49


The US Dollar looks poised to launch another assault on the 119.00 figure against the Japanese Yen following a brief corrective pullback. Near-term resistance is in the 118.97-119.24 area, marked by the November 20 high and the 14.6% Fibonacci expansion, with a break above that on a daily closing basis exposing the 23.6% level at 120.48. Alternatively, a reversal below the 14.6% Fib retracement at 116.96 opens the door for a test of the 23.6% threshold at 115.71.


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, waiting for a more actionable opportunity to present itself.



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USD/JPY Technical Analysis: Buyers Threaten 119.00 Anew


Daily Chart – Created Using FXCM Marketscope 2.0



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





USD/JPY Technical Analysis: Buyers Threaten 119.00 Anew

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