Japanese Yen Technical Analysis: USDJPY Slip Looks Corrective

Japanese Yen Technical Analysis Talking Points:

  • USD/JPY has retreated this week, but support looks firm
  • Expect a test of key resistance soon
  • EUR/JPY is flagging more obviously

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The Japanese Yen remains on the back foot against a US Dollar well supported on a fundamental level by a yawning interest rate gap in its favor.

Admittedly USD/JPY has slipped back a litle both last week and this, but that move looks as though it is corrective in nature. However the Dollar has slipped below the uptrend channel which had previously contained trade since October 26/

Modest Fallback. US Dollar Vs Japanese Yen, Daily Chart

That slip has not been confirmed by a daily close and, even if it is this week, it will probably take a fall below support in the red area of the chart above to raise the specter of more serious short-term problems for the US Dollar, and I don’t expect that.

To the upside resistance looks reasonably stiff

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