USD/JPY Technical Analysis: Topping Signaled Below 125.00
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- USD/JPY Technical Strategy: Flat
- Support: 123.66, 122.80, 121.42
- Resistance: 124.78, 126.31, 127.25
The US Dollar may be readying to decline against the Japanese Yen having put in a Bearish Engulfing candlestick pattern. A daily close below the 14.6% Fibonacci retracementat 123.66 exposes the 23.6% level at 122.80. Alternatively, a move above the 100% Fibexpansion at 124.78 opens the door for a challenge of the 123.6% threshold at 126.31.
Confirmation of a bearish reversal is likely to wait for the US Employment report due Friday to cross the wires, warning against committing to a directional bias in the interim. With that in mind, we will continue to stand aside for now.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.