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Talking Points:
- USD/JPY Technical Strategy: Flat
- Support: 117.78, 116.96, 115.71
- Resistance: 119.05, 120.27, 121.79
The US Dollar is stalling against the Japanese Yen, with a Shooting Star candlestick warning that a top may be in the works. A daily close below rising channel floor support at 117.78 exposes the 14.6% level at 116.96. Alternatively, a push above the 50% Fib expansion at 119.05 clears the way for a challenge of the 61.8% threshold at 120.27.
Prices are too close to support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal suggests that taking up the long side is premature. With that in mind we will remain flat for now.
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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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