Forex: USD/JPY Technical Analysis – Long Entry Setup Sought
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Talking Points:
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 continues to make slow headway against the Japanese Yen, with prices edging above resistance at a falling trend line set from late December. Near-term resistance is now at 103.26, the 100% Fibonacci expansion, with a break above that exposing the 123.6% level at 103.75. Alternatively, a turn back below the trend line (now at 102.94) and the 76.4% Fib at 102.77 aims for the February 17 low at 101.38.
Prices are wedged too closely between near-term support and resistance to justify a trade on risk/reward grounds. Furthermore, the presence of a Shooting Star candlestick warns against betting on upside follow-through. We are biased in favor of the upside but will stand side for now until a more attractive setup presents itself.
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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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