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Talking Points:
- USD/JPY Technical Strategy: Flat
- Support: 117.91, 115.48, 113.51
- Resistance: 119.41, 119.93, 121.84
The US Dollar turned lower against Japanese Yenas expected after putting in a bearish Three Inside Down candlestick pattern. A daily close below the 23.6% Fibonacci retracementat 117.91exposes the 38.2% level at 115.48. Alternatively, a reversal above the 14.6% Fib at 119.41 clears the way for a test of trend line support-turned-resistance at 119.93.
Current positioning does not offer an actionable trade setup. Risk/reward considerations argue against entering long with prices in close proximity to resistance. On the other hand, the absence of an immediate bearish reversal signal suggests taking up the short side is premature.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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