Forex

While the rest of the majors have contented themselves in their anti-dollar advances, the USDJPY looks as if it may be turning in the greenbacks favor. While this may have to more to do with risk trends than anything else, we do not have to concern ourselves with the particulars. What is notable for us is the proximity of notable Fibonacci levels and the pressure those technicals will have in building up a potential breakout. Resistance is clearly defined by an easily read 38.2% retracement of the 12/27 to 1/23 bear wave. Support, on the other hand, is at the 50% Fib level of the shorter lived 1/23 to 2/14 swing high. I am still flat on this pair, but I will be watching intently to see if a break can offer greater direction for the USDJPY.

Strategy: Flat, waiting for either a break above the medium-term 38.2% fib at 108.60 or a move below 104.95
While the rest of the majors have contented themselves in their anti-dollar advances, the USDJPY looks as if it may be turning in the greenbacks favor. While this may have to more to do with risk trends than anything else, we do not have to concern ourselves with the particulars. What is notable for us is the proximity of notable Fibonacci levels and the pressure those technicals will have in building up a potential breakout. Resistance is clearly defined by an easily read 38.2% retracement of the 12/27 to 1/23 bear wave. Support, on the other hand, is at the 50% Fib level of the shorter lived 1/23 to 2/14 swing high. I am still flat on this pair, but I will be watching intently to see if a break can offer greater direction for the USDJPY.