Friday, February 27, 2015

USD/JPY Technical Analysis: Still Stuck at Channel Support




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Talking Points:



  • USD/JPY Technical Strategy: Flat


  • Support: 118.82, 117.17, 115.48


  • Resistance: 120.82, 121.91, 123.88


The US Dollar remains locked in a narrow range between channel support and the 120.00 figure against the Japanese Yen. A daily close above the December 23 highat 120.82 exposes the 121.84-91 area (December 8 high, 38.2% Fibonacci expansion). Alternatively, a turn below rising channel floor support at 118.82 opens the door for a test ofthe January 21 low at 117.17.



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, waiting for a more actionable opportunity to present itself.



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USD/JPY Technical Analysis: Still Stuck at Channel Support


Daily Chart – Created Using FXCM Marketscope



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





USD/JPY Technical Analysis: Still Stuck at Channel Support

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