USD/JPY Technical Analysis: July Highs Pressured Anew
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- USD/JPY Technical Strategy: Flat
- Support: 123.77, 123.13, 122.48
- Resistance: 124.55, 125.03, 125.51
The US Dollar is attempting to renew upside momentum against the Japanese Yen, with prices moving to test July’s highs once again. Near-term resistance is at 124.55, the 38.2% Fibonacci expansion, with a break above that on a daily closing basis exposing the 50% level at 125.03. Alternatively, a move below the 61.8% Fib retracement at 123.77 clears the way for a challenge of the 50% threshold at 123.13.
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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--- 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.