USD/JPY Technical Analysis: Eyeing 2-Month Resistance Line

By DailyFx | Updated July 24, 2014 AAA

DailyFX.com -

To receive Ilya's analysis directly via email, please SIGN UP HERE

Talking Points:

  • USD/JPY Technical Strategy: Flat
  • Support: 101.52, 101.06, 100.81
  • Resistance: 101.81, 102.04, 102.25-28

The US Dollar advanced to the strongest level in two weeks against the Japanese Yen to put prices at key resistance defining the down trend since early June. A daily close above 101.81, the intersection of the 38.2% Fibonacci expansion and a falling channel top, initially exposes the 50% level at 102.04. Alternatively, a reversal below the 23.6% Fib at 101.52 opens the door for a challenge of the July 10 low at 101.06.

Risk/reward considerations argue against entering long with prices trading in close proximity to resistance. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short side is premature. We will remain flat for now.

Add these technical levels directly to your charts with our Support/Resistance Wizard app!

USD/JPY Technical Analysis: Eyeing 2-Month Resistance Line

Daily Chart - Created Using FXCM Marketscope 2.0

comments powered by Disqus
Related Forex Analysis
  1. USD/JPY challenges tops near 109.40
    Forex News

    USD/JPY challenges tops near 109.40

  2. USD/JPY Back at 13 Year Trendline
    Forex News

    USD/JPY Back at 13 Year Trendline

  3. US Dollar Forecast to Rally Further, but Why Have Risks Grown?
    Forex News

    US Dollar Forecast to Rally Further, but Why Have Risks Grown?

  4. US Dollar Predicted to Test Highs versus Yen
    Forex News

    US Dollar Predicted to Test Highs versus Yen

  5. Japanese Yen Remains a sell versus GBP
    Forex News

    Japanese Yen Remains a sell versus GBP

Trading Center