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The Japanese Yen is continues to rise against the US Dollar after producing a Hanging Man candlestick. Prices are testing support at 101.59, the 23.6% Fibonacci expansion, with a break below this boundary exposing the 38.2% level at 100.90. Near-term resistance is at 102.69, the February 11 high.
A short position at current levels looks premature absent confirmation of a support break on a daily closing basis. Needless to say, a long trade would require an as-yet absent reversal signal. We will remain on the sidelines for now, looking for the current pullback to produce an actionable setup to enter long in line with the longer-term rising trend.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com