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- USD/JPY Technical Strategy: Flat
- Support: 101.32, 100.97, 100.38
- Resistance: 101.85, 102.13-35, 102.71
The US Dollar is attempting to reassert itself against the Japanese Yen, rebounding from the upper layer of range support dating back to early February. Resistance is seen at a falling trend line set from the June 4 high, now at 101.85, with a daily close above that initially targeting the 102.13-35 area marked by the May 27 and May 13 swing highs. Long-standing range support remains in the 100.97-101.32 zone. A move below that opens the door for a test of a horizontal pivot at 100.38.
Overall positioning remains heavily congested and looming event risk by way of the US Employment report warns against taking directional bets at this point. We will continue to stand aside, waiting for an actionable opportunity to emerge.
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Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for DailyFX.com