USD/JPY Technical Analysis: Key Flag Resistance Broken
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- USD/JPY Technical Strategy: Flat
- Support: 119.66, 118.93, 118.20
- Resistance: 120.68, 121.46, 122.13
The US Dollar may have resumed its uptrend against the Japanese Yen after completing a Flag chart pattern. A daily close above the 38.2% Fibonacci expansion at 120.68 exposes the 50% level at 121.41. Alternatively, a reversal below 119.66 (38.2% Fib retracement, channel top resistance-turned-support) opens the door for a challenge of the 50% retracement at 118.93.
While entering long seems compelling from a purely technical perspective, we will tactically opt to stand aside for now. The upcoming release of minutes from the March FOMC meeting represents significant event risk that may materially alter positioning.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com