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Talking Points:
- USD/JPY Technical Strategy: Flat
- Support: 108.24, 107.38, 106.80
- Resistance: 109.47, 110.22, 111.45
The US Dollar continues to consolidate in a well-defined range below the 110.00 figure against the Japanese Yen. Near-term resistance is at 109.47, the 14.6% Fibonacci retracement, with a break above that on a daily closing basis exposing the 23.6% level at 110.22. Alternatively, a reversal below the September 23 low at 108.24 clears the way for a test of the September 12 high at 107.38.
Prices are too close to resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short side is premature. With that in mind we will remain flat for now.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
