USD/JPY Technical Analysis: Direction Sought Near 120.00
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- USD/JPY Technical Strategy: Flat
- Support: 119.48, 117.98, 115.55
- Resistance: 121.91, 123.88, 125.84
The US Dollar is treading water near the 120.00 figure against the Japanese Yen as prices wait for clear-cut direction cues. A daily close above the 38.2% Fibonacci expansionat 121.91 exposes the 50% level at 123.88. Alternatively, a turn below the 23.6% Fib at 119.48 clears the way for a challenge of the 14.6% level at 117.98.
Entering long seems compelling from a technical perspective, but we will tactically opt not to pursue the position. We suspect a Yen recovery may be ahead, warning against taking bets on the currency’s decline. As such, 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.