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- USD/JPY Technical Strategy: Flat
- Support: 102.11 (23.6% Fib exp.), 101.53 (channel floor)
- Resistance: 102.60 (38.2% Fib exp.), 103.00 (50% Fib exp.)
The US Dollar continues to probe higher against the Japanese Yen having rebounded as expected after forming bullish Morning Star candlestick pattern. Buyers are testing above the 38.2% Fibonacci expansion at 102.60, with a daily close above this barrier exposing the 50% level at 103.00. Alternatively, a turn back below the 38.2% Fib at 102.11 targets the bottom of a channel set from early February, now at 101.53.
Risk/reward considerations argue against taking a long position with prices trading so close to relevant resistance. We will remain flat for the time being, waiting for a more attractive setup to present itself.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com