USD/JPY Technical Analysis: Buyers Probing Above 115.00
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- USD/JPY Technical Strategy: Flat
- Support: 114.21, 112.08, 1100.76
- Resistance: 115.53, 116.34, 117.66
The US Dollar continues to race higher against the Japanese Yen having turned upward as expected after putting in a Morning Star candle pattern. Near-term resistance is at 115.53, the 114.6% Fibonacci expansion, with a break above that on a daily closing basis exposing the 123.6% level at 116.34. Alternatively, a reversal back below the 100% Fib at 114.21 opens the door for a test of the 76.4% expansion at 112.08.
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 that 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