USD/JPY Technical Analysis: Aiming Above 120.00 Figure
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- USD/JPY Technical Strategy: Flat
- Support: 119.24, 117.23, 116.23
- Resistance: 120.48, 122.49, 124.12
The US Dollar looks to be accelerating against the Japanese Yen anew, with prices poised to advance beyond the 120.00 figure. A daily close above the 23.6% Fibonacci retracement at 120.48 exposes the 38.2% level at 122.49. Alternatively, a reversal below the 14.6% Fib at 119.24 clears the way for a test of the November 27 low at 117.23.
While a long position seems compelling, we will tactically opt to stand aside for now. The Yen is typically very sensitive to oscillations in risk sentiment, which may turn violent as high-profile event risk (ECB, NFP) looms ahead. This could derail chart positioning and we prefer to wait out the results rather than commit to a directional bias at this point.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.