USD/JPY Technical Analysis: Weakness Signaled Below 105.00

By DailyFx | August 27, 2014 AAA

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Talking Points:

  • USD/JPY Technical Strategy: Flat
  • Support: 103.64, 103.15, 102.75
  • Resistance: 104.14, 104.44, 105.19

The US Dollar appears vulnerable to a reversal downward against the Japanese Yen prices put in a bearish Evening Star candlestick pattern. A daily close below the 23.6% Fibonacci retracement at 103.64 exposes the 38.2% level at 103.15. Alternatively, a turn above the 23.6% Fib expansion at 104.14 opens the door for a challenge of the August 25 high at 104.44.

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

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USD/JPY Technical Analysis: Weakness Signaled Below 105.00

Daily Chart - Created Using FXCM Marketscope 2.0

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