USD/JPY Technical Analysis: Oscillating in Familiar Range
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- USD/JPY Technical Strategy: Flat
- Support: 118.71, 118.32, 117.52
- Resistance: 119.74, 120.68, 121.41
The US Dollar continues to tread water near support below the 119.00 figure against the Japanese Yen. Near-term support is at 118.71, the April 3 low, with a break below that on a daily closing basis exposing the March 26 bottom at 118.32. Alternatively, a move above trend lien resistance at 119.74 clears the way for a test of the 38.2% Fibonacci expansion at 120.68.
Risk/reward considerations argue against entering long with prices in close proximity to resistance. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short side is premature. We will remain flat for now, waiting for an actionable opportunity to present itself.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com