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- USD/JPY Technical Strategy: Flat
- Support: 101.65 (channel floor), 100.75 (Feb 4 low)
- Resistance: 102.84 (23.6% Fib exp.), 104.14 (38.2% Fib exp.)
The US Dollar continues to tread water against the Japanese Yen, with prices in consolidation mode above rising channel support set from early February. The first layer of resistance is at 102.84, the 23.6% Fibonacci expansion, with a daily close above that exposing the 38.2% level at 104.14. The channel bottom is now at 101.65, with a break below that initially targeting the February 4 low at 100.75.
Risk/reward considerations argue against entering short with prices sitting squarely at relevant support. On the other hand, taking up the long side looks premature without a defined bullish reversal signal. We will remain flat for now, waiting for greater clarity to emerge.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com