USD/JPY Technical Analysis: Probing Below 108.00 Figure
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- USD/JPY Technical Strategy: Flat
- Support: 107.89, 106.54, 105.45
- Resistance: 110.19, 110.65, 111.54
The US Dollar dipped to a three-week low against the Japanese Yen but prices failed to break through familiar range support. A daily close below the 23.6% Fibonacci retracement at 107.89 exposes the 38.2% level at 106.54. Alternatively, a turn above the 110.08-19 area marked by the 23.6% Fib expansion and the October 1 high opens the door for a challenge of the August 15 2008 top at 110.65.
Risk/reward considerations argue against entering short with prices in close proximity to support. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long side is premature. We will remain flat for now, waiting for a more actionable 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