USD/JPY Technical Analysis: Marking Time at Channel Floor

• USD/JPY Technical Strategy: Flat
• Support: 118.62, 117.17, 115.48
• Resistance: 120.82, 121.91, 123.88

The US dollar continues to stall, with prices oscillating in a narrow range below the 120.00 figure against the Japanese Yen. Near-term resistance is at 120.82, the December 23 high, with a break above that on a daily closing basis exposing the 121.59-91 area (December 8 high, 38.2% Fibonacci expansion). Alternatively, a push below rising channel floor support at 118.51 clears the way for a challenge ofthe January 21 low at 117.17.

Prices are too close to support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal suggests that taking up the long side is premature. With that in mind, we will remain flat for now.