USD/JPY Technical Analysis: Marking Time at Channel Floor
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- USD/JPY Technical Strategy: Flat
- Support: 118.62, 117.17, 115.48
- Resistance: 120.82, 121.91, 123.88
The US Dollar continues to stall, with prices oscillating in a narrow range below the 120.00 figure against the Japanese Yen. Near-term resistance is at 120.82, the December 23 high, with a break above that on a daily closing basis exposing the 121.59-91 area (December 8 high, 38.2% Fibonacci expansion). Alternatively, a push below rising channel floor support at 118.51 clears the way for a challenge ofthe January 21 low at 117.17.
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