USD/JPY Technical Analysis: Treading Water at December Top
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- USD/JPY Technical Strategy: Flat
- Support: 120.82, 119.80, 117.17
- Resistance: 121.91, 123.88, 125.84
The US Dollar is treading water against the Japanese Yen near December’s swing high below the 122.00 figure. A daily close above the 121.84-91 area (December 8 high, 38.2% Fibonacci expansion) exposes the 50% level at 123.88. Alternatively, a turn below resistance-turned-support at 120.82, the December 23 high, opens the door for a test of rising trend line support at 119.80.
Prices are too close to resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal suggests that taking up the short 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