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Talking Points:
- USD/JPY Technical Strategy: Flat
- Support: 103.64, 103.15, 102.75
- Resistance: 104.14, 104.44, 105.19
The US Dollar continues to fight for a foothold above the 104.00 figure against the Japanese Yen after jumping sharply higher last week. Near-term resistance is at 104.14, the 38.2% Fibonacci expansion, with a break above that on a daily closing basis exposing the August 25 high at 104.44. Alternatively, a reversal below the 23.6% Fib retracement at 103.64 clears the way for a test of the 38.2% threshold at 103.15.
Prices are too close to resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short 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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