USD/JPY Technical Analysis: Yen Jumps to 3-Week High

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Talking Points:

• USD/JPY Technical Strategy: Flat
• Support: 123.41, 122.84, 122.26
• Resistance: 124.12, 124.56, 125.27

The US Dollar broke down from its consolidation range against the Japanese Yen, with deeper losses hinted ahead. A daily closing below the 38.2% Fibonacci retracementat 123.41 exposes the 50% level at 122.84. Alternatively, a move above the 23.6% Fib at 124.12 opens the door for a challenge of the 14.6% retracement at 124.56.

The available trading range is too narrow to justify entering a trade on the long or short side 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