USD/JPY Technical Analysis – Yen Moves to 1-Month High
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- USD/JPY Technical Strategy: Flat
- Support: 101.32, 100.97, 100.38
- Resistance: 101.92, 102.13-35, 102.71
The US Dollar has declined to test year-to-date range support against the Japanese Yen after breaking the bottom of a channel set from mid-May. A daily close below 101.32 exposes the outer layer of range support at 100.97. The range bottom – now at 101.92 – has been recast as near-term resistance. A turn back above that aims for the May 27 high at 102.13.
Risk/reward considerations warn against entering short with prices sitting just above relevant support. Alternatively, the absence of a defined bullish reversal signal suggests it is premature to take up the short side. On balance, we remain flat.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.