Talking Points: - USD/JPY Technical Strategy: Flat
- Support: 120.82, 119.80, 117.17
- Resistance: 121.91, 123.88, 125.84
The US dollar is treading water against the Japanese yen near December’s swing high below the 122.00 figure. A daily close above the 121.84-91 area (December 8 high, 38.2% Fibonacci expansion) exposes the 50% level at 123.88. Alternatively, a turn below resistance-turned-support at 120.82, the December 23 high, opens the door for a test of rising trend line support at 119.80.
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. With that in mind, we will remain flat for now.