USD/JPY Stuck in Consolidative Mode
Dailyfx | May 12, 2014 01:02AM ET
- USD/JPY Technical Strategy: Flat
- Support: 101.65 (channel floor), 100.75 (Feb 4 low)
- Resistance: 102.84 (23.6% Fib exp.), 104.14 (38.2% Fib exp.)
The US dollar continues to tread water against the Japanese yen, with prices in consolidation mode above rising channel support set from early February. The first layer of resistance is at 102.84, the 23.6% Fibonacci expansion, with a daily close above that exposing the 38.2% level at 104.14. The channel bottom is now at 101.65, with a break below that initially targeting the February 4 low at 100.75.
Risk/reward considerations argue against entering short with prices sitting squarely at relevant support. On the other hand, taking up the long side looks premature without a defined bullish reversal signal. We will remain flat for now, waiting for greater clarity to emerge.
Original post
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.