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Forex: USD/JPY Technical Analysis – Support Below 102.00 Tested
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Talking Points:
USD/JPY Technical Strategy: Flat
Support: 101.59 (23.6% Fib exp.), 100.90 (38.2% Fib ret.)
Resistance: 102.96 (Feb 11 high)
The Japanese Yen is continues to rise against the US Dollar after producing a Hanging Man candlestick. Prices are testing support at 101.59, the 23.6% Fibonacci expansion, with a break below this boundary exposing the 38.2% level at 100.90. Near-term resistance is at 102.69, the February 11 high.
A short position at current levels looks unattractive from a risk/reward perspective as prices trade squarely at immediate support. On the other hand, a long trade is premature absent confirmation of reversal. Indeed, the presence of support by no means guarantees that it will necessarily hold. We will remain on the sidelines for now.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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