USD/JPY Technical Analysis: Resistance Now Above 122.00
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- USD/JPY Technical Strategy: Flat
- Support: 120.48, 119.24, 117.23
- Resistance: 122.49, 124.12, 125.74
The US Dollar resumed its advance against the Japanese Yen, with buyers claiming a foothold above the 121.00 figure. A daily close above the 38.2% Fibonacci expansion at 122.49 exposes the 50% level at 124.12. Alternatively, a reversal below the 23.6% Fib at 120.48 clears the way for a test of the 14.6% expansion at 119.24.
While entering long is a tempting proposition, we will tactically opt to stand aside for now. We are leery of entering short Yen, worrying that year-end capital flows may fuel a recovery in the currency. With that in mind, we will continue to stand aside for now.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com