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- USD/JPY Technical Strategy: Flat
- Support: 102.77-94 (76.4% Fib exp., trend line), 101.38 (Feb 17 low)
- Resistance:103.26 (100% Fib exp.), 103.75 (123.6% Fib exp.)
The US Dollar is struggling to build significant upward momentum against the Japanese Yen after prices cleared resistance at a falling trend line set from late December. A Shooting Star candlestick below resistance at 103.26, the 100% Fibonacci expansion, points to indecision and hints at a move lower may be ahead. A turn back below the trend line (now at 102.89) and the 76.4% Fib at 102.77 aims for the February 17 low at 101.38. Alternatively a break above resistance at 103.26, the 100% expansion, exposes the 123.6% level at 103.75.
A Shooting Star by itself is not sufficient to enter short without confirmation. With that in mind, we will continue to monitor price action from the sidelines for the time being.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com