USD/JPY Technical Analysis: Trying to Break Below 119.00
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- USD/JPY Technical Strategy: Flat
- Support: 118.93, 118.20, 117.30
- Resistance: 119.66, 120.82, 121.84
The US Dollar dipped to the lowest level in a month against the Japanese Yen as prices attempt to clear the 119.00 figure. A daily close below the 50% Fibonacci retracement at 118.93 exposes the 61.8% level at 118.20. Alternatively, a reversal above the 38.2% Fib at 119.66 clears the way for a test of the 120.62-82 area (trend line support-turned-resistance, December 23 high).
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