USD/JPY Technical Analysis: Prices Set New Monthly High

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Talking Points:

• USD/JPY Technical Strategy: Flat
• Support: 123.96, 123.59, 123.00
• Resistance: 124.55, 125.03, 125.51

The US Dollar continues to push upward against the Japanese Yen, with prices advancing to set a new monthly high. A daily close above the 38.2% Fibonacci expansionat 124.55 exposes the 50% level at 125.03. Alternatively, a turn below the 23.6% Fib at 123.96 opens the door for a test of the 14.6% expansion at 123.59.

The available trading range is too narrow to justify entering a trade in line with our long-term Euro outlook 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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--- Written by Ilya Spivak, Currency Strategist for DailyFX.com