USD/JPY Technical Analysis: Buyers Lose Hold of 120.00
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- USD/JPY Technical Strategy: Flat
- Support: 119.66, 118.93, 118.20
- Resistance: 120.14, 120.68, 121.41
The US Dollar turned lower against the Japanese Yen after finding resistance at a three-week falling channel top. A daily close below the 38.2% Fibonacci retracementat 119.66 exposes the 50% level at 118.93. Alternatively, a turn above channel resistance at 120.14 opens the door for a challenge of the 38.2% Fib expansion at 120.68.
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