USD/JPY Technical Analysis: Topping Cues Emerge Sub-107
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- USD/JPY Technical Strategy: Flat
- Support: 105.77, 105.43, 105.04
- Resistance: 106.44, 106.99, 107.54
The US Dollar may be close to topping against the Japanese Yen as prices show a Shooting Star candlestick pattern coupled with negative RSI divergence. A daily close below the 23.6% Fibonacci expansion at 105.77 exposes the January swing high at 105.43, followed by a rising trend line at 105.04. Alternatively, a turn below the 38.2% level at 106.44 clears the way for a test of the 50% Fib at 106.99.
A Shooting Star speaks to indecision and does not amount to an actionable short entry signal by itself absent further confirmation. We remain on the sidelines for the time being, waiting for a more concrete trading opportunity to present itself.
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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.