Forex: USD/JPY Technical Analysis – Ready to Expose 100.00 Level?
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- USD/JPY Technical Strategy: Flat
- Support: 100.98 (50% Fib ret.), 99.93 (61.8% Fib ret.)
- Resistance: 102.02 (38.2% Fib ret.), 103.32 (23.6% Fib ret.)
Our long USD/JPY position was stopped out as prices dropped below support at 102.02, the intersection of the 38.2% Fibonacci retracement and a falling channel bottom, and negated a bullish Morning Star candlestick pattern. Sellers are now testing support at 100.98, the 50% level, with a break below that targeting the 61.8% Fib at 99.93. Alternatively, a close back above 102.02 aims for the 23.6% retracement at 103.32.
Risk/reward considering argue against taking a short trade with prices in such close proximity to near-term support. The absence of a clear-cut upward reversal signal likewise warns against trying a long position. As such, we will remain flat for now.
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Daily Chart - Created Using FXCM Marketscope 2.0
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