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Talking Points:
- USD/JPY Technical Strategy: Flat
- Support: 124.20, 123.18, 122.36
- Resistance: 124.83, 125.85, 126.80
The US Dollar moved lower against the Japanese Yen as expected to produce a bearish Dark Cloud Cover candlestick pattern, warning of deeper losses ahead. A daily close below the 23.6% Fibonacci retracementat 124.20 exposes the 38.2% level at 123.18. Alternatively, a reversal above the 14.6% Fibat 124.83 opens the door for a test of the June 5 high at 125.85.
Prices are wedged too closely between near-term support and resistance levels to justify taking a trade on a long or short side from a risk/reward perspective. With that in mind, we will continue to stand aside until a more attractive opportunity presents itself.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
