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Talking Points:
- USD/JPY Technical Strategy: Flat
- Support: 114.21, 112.08, 110.76
- 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. A daily close above the 114.6% Fibonacci expansionat 115.53 exposes the 123.6% level at 116.34. Alternatively, a turn back below the 100% Fib at 114.21 clears the way for a challenge of the 76.4% expansion at 112.08.
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
