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 may correct lower against the Japanese Yen following the appearance of a Harami candlestick pattern. Near-term support is at 120.48, the 23.6% Fibonacci expansion, with a break below that on a daily closing basis exposing the 14.6% level at 119.24. Alternatively, a turn above the 38.2% Fib at 122.49 opens the door for a challenge of the 50% expansion at 124.12.
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
--- 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.