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Talking Points:
- USD/JPY Technical Strategy: Flat
- Support: 107.76, 106.80, 106.04
- Resistance: 108.35, 109.31, 110.09
The US Dollar posted its largest daily advance in eight months against the Japanese Yen, soaring past the 108.00 figure. A daily close above the 23.6% Fibonacci expansion at 108.35 exposes the 38.2% level at 109.31. Alternatively, a reversal below the 14.6% Fib at 107.76 opens the door for a challenge September 16 low at 106.80.
Risk/reward considerations argue against entering longas prices hover just at 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 a more actionable opportunity to present itself.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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