USD/JPY Technical Analysis: Support Now Below 117.00
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- USD/JPY Technical Strategy: Flat
- Support: 116.96, 115.71, 113.70
- Resistance: 118.09, 119.05, 120.27
The US Dollar moved downward against the Japanese Yen as expected after showing a Shooting Star candlestick, breaking monthly channel support. A daily close below the 14.6% Fibonacci retracement at 116.96 exposes the 23.6% level at 115.71. Alternatively, a reversal above channel floor support-turned-resistance at 118.09 clears the way for a test of the 50% Fib expansion at 119.05.
Prices are too close to support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal suggests that taking up the long 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