USD/JPY Technical Analysis: Resistance Now Above 120.00
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- USD/JPY Technical Strategy: Flat
- Support: 119.73, 119.32, 118.88
- Resistance: 120.17, 120.60, 121.14
The US Dollar continued to recover against the Japanese Yen, producing the first three-day winning streak in six weeks. Near-term resistance is at 120.17, the 50% Fibonacci retracement, with a break above that on a daily closing basis exposing the 61.8% level at 120.60. Alternatively, a turn below the 38.2% retracement at 119.73 clears the way for at test of the 38.2% Fib expansion at 119.32.
The available trading range is too narrow to justify entering a trade on the long or short side from a risk/reward perspective. With that in mind, we will remain flat for now, waiting for price action to offer a more compelling opportunity down the road.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com