Yahoo Finance 
USD/JPY Technical Analysis: Passing on Triangle Breakout
DailyFX.com -
To receive Ilya's analysis directly via email, please SIGN UP HERE
Talking Points:
USD/JPY Technical Strategy: Flat
Support: 118.96, 118.10, 116.76
Resistance: 120.82, 121.91, 123.88
The US Dollar may be readying to resume its advance against the Japanese Yen after prices cleared resistance at the top of a two-month-old Triangle pattern. A daily close above the December 23 high at 120.82 exposes the 38.2% Fibonacci expansion at 121.91. Alternatively, a turn below Triangle top resistance-turned-support at 118.96 clears the way for a challenge of recently broken channel top at 118.10.
While entering long seems tempting, we will tactically opt to stand aside. A strong correlation between USDJPY and the S&P 500 stock index hints at a high sensitivity to sentiment trends. That makes a long trade vulnerable to the breakout of risk aversion if upcoming negotiations between Greece and the EU are unsuccessful. With that in mind, we will stand aside.
Add these technical levels directly to your charts with our Support/Resistance Wizard app!
Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.
