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Talking Points:
- USD/JPY Technical Strategy: Flat
- Support: 112.08, 110.76, 109.70
- Resistance: 114.21, 115.53, 116.34
The US Dollar paused its advance against the Japanese Yen having rallied as expected following the formation of a Morning Star candle pattern. A daily close above the 100% Fibonacci expansionat 114.21 exposes the 114.6% level at 115.53. Alternatively, a turn back below the 76.4% Fib at 112.08 clears the way for a challenge of the 61.8% expansion at 110.76.
Risk/reward considerations argue against entering long with prices in close proximity to resistance. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short 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
