Monday, February 2, 2015

USD/JPY Technical Analysis: Key Support Below 117.00 Mark




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Talking Points:



  • USD/JPY Technical Strategy: Flat


  • Support: 116.96, 116.37, 115.78


  • Resistance: 117.43, 118.86, 120.82


The Japanese Yen is attempting to extend gains against the US Dollar after edging below long-standing congestion range support. A daily close below the 38.2% Fibonacci expansion at 116.96 exposes the 50% level at 166.37. Alternatively, a turn back above range floor support-turned-resistance at 117.43 clears the way for a challenge of the January 20 high at 118.86.



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 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: Key Support Below 117.00 Mark


Daily Chart – Created Using FXCM Marketscope



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





USD/JPY Technical Analysis: Key Support Below 117.00 Mark

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