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Talking Points:
- USD/JPY Technical Strategy: Flat
- Support: 115.48, 113.51, 111.55
- Resistance: 117.91, 119.41, 120.63
The US Dollar declined against Japanese Yenas expected having completed a bearish Three Inside Down candlestick pattern. Near-term support is at 115.48, the 38.2% Fibonacci retracement, with a break below that on a daily closing basis exposing the 50% level at 113.51. Alternatively, a turn above the 23.6% Fib at 117.91 opens the door for a challenge of the 14.6% expansion at 119.41.
Entering short is tempting but we will tactically opt to stand aside, waiting for the upcoming FOMC policy announcement to pass before committing to a directional bias. The outcome may spell volatility for sentiment-sensitive Yen-based currency pairs, threatening to derail follow-through on technical positioning.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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