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USDJPY: Rebound Stalls Below Channel Top

Ilya Spivak

Strategy: Flat

Prices put in a Doji candlestick at resistance marked by the 38.2% Fibonacci retracement (78.45), a barrier reinforced by the top of a falling channel set from late June (78.70), hinting a reversal lower may be ahead. Initial support lines up at 77.95, the 23.6% Fib, with a break below that exposing 77.47. Alternatively, a push above the channel top initially targets the 50% retracement at 78.87. An actionable trade setup is absent for now and we will stand aside until something concrete presents itself.

USDJPY_Rebound_Stalls_Below_Channel_Top_body_Picture_5.png, USDJPY: Rebound Stalls Below Channel Top

Daily Chart - Created Using FXCM Marketscope 2.0

--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com

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