USD/JPY Technical Analysis: Stalling Below 120.00 Figure
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- USD/JPY Technical Strategy: Flat
- Support: 118.06, 117.17, 116.19
- Resistance: 120.82, 121.91, 123.88
The US Dollar is treading water against the Japanese Yen after retesting a broken Triangle formation top, now recast as support. A daily close above the December 23 highat 120.82 exposes the 121.84-91 area (December 8 high, 38.2% Fibonacci expansion). Alternatively, a turn below Triangle resistance-turned-support at 118.06 opens the door for a test ofthe January 21 low at 117.17.
A long trade seems tempting from a purely technical perspective but we will tactically opt to stand aside for now. Continued uncertainty surrounding the Greek debt impasse casts a cloud over sentiment trends, with the possible breakout of risk aversion threatening to derail upside potential.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com