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- USD/JPY Technical Strategy: Flat
- Support: 102.01 (23.6% Fib exp.), 101.52 (38.2% Fib exp.)
- Resistance: 102.30-37 (14.6% Fib exp., channel floor), 102.77 (June 4 high)
The US Dollar fell against the Japanese Yen as expected after forming a Bearish Engulfing candlestick pattern. Sellers are testing support at 102.01, the 23.6%Fibonacci expansion, with a break below that on a daily closing basis exposing the 38.2% level at 101.52. Near-term resistance is in the 102.30-37 area, marked by the 14.6% Fib and the underside of a broken rising channel. A turn back above that exposes the June 4 highat 102.77.
Prices are too close to support to justify a short position from a risk/reward perspective. On the other hand, the absence of a confirmed bullish reversal signal warns against taking up the long side. We will remain flat for now.
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Daily Chart - Created Using FXCM Marketscope 2.0