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Talking Points:
- USD/JPY Technical Strategy: Flat
- Support: 119.56, 118.71, 118.32
- Resistance: 120.68, 121.41, 122.13
The US Dollar corrected narrowly lower after seemingly completing an upside breakout against the Japanese Yen late last week. A daily close above the 38.2% Fibonacci expansion at 120.68 exposes the 50% level at 121.41. Alternatively, a reversal below trend line resistance-turned-support at 119.56 opens the door for a challenge of the April 3 lowat 118.71.
While entering long is a compelling proposition from a purely technical perspective, we will tactically opt to stand for now. Sentiment-linked Yen pairs may see positioning derailed by reactions to this week’s high-profile event risk. With that in mind, we will stay flat for the time being.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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