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Talking Points:
- USD/JPY Technical Strategy: Flat
- Support: 119.01, 117.17, 115.48
- Resistance: 120.82, 121.91, 123.88
The US Dollar is attempting to launch a recovery from channel support against the Japanese Yen, eyeing resistance below the 121.00 figure. A daily close above the December 23 highat 120.82 exposes the 121.84-91 area (December 8 high, 38.2% Fibonacci expansion). Alternatively, a turn below rising channel floor support at 119.01 opens the door for a test ofthe January 21 low at 117.17.
While entering long seems compelling from a purely technical perspective, we will tactically opt to stand aside. The US Dollar faces heavy event risk in the coming days which may spark sharp volatility and derail follow-through on technical positioning. With that in mind, we will hold off on committing to a directional bias for now.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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