Tuesday, 02 January 2024 12:17 GMT

USD/JPY Technical Analysis: Oscillating Around 108.00


Date:

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Talking Points:

  • USD/JPY Technical Strategy: Flat
  • Support: 107.31 106.50 105.18
  • Resistance: 108.63 110.08 110.76

The US Dollar rose as expected against the Japanese Yen after producing a bullish Morning Star candlestick pattern. Near-term resistance is in the 108.40-63 area marked by the October 2 close and the 38.2% Fibonacci retracement. A break above that on a daily closing basis exposes the 109.70-110.08 zone (50% level October 1 high). Alternatively a turn back below the 23.6% Fib at 107.31 clears the way for a challenge of the 14.6% expansion at 106.50.

Prices are too close to resistance to justify entering long from a risk/reward perspective. On the other hand the absence of a defined bearish reversal signal suggests that taking up the short side is premature. Furthermore we are leery of initiating new exposure ahead of the upcoming FOMC policy announcement.

With that in mind we will remain flat.

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USD/JPY Technical Analysis: Oscillating Around 108.00

Daily Chart - Created Using FXCM Marketscope 2.0

--- Written by Ilya Spivak Currency Strategist for DailyFX.com


original source


DailyFX (IG.com)

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