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Talking Points:
- USD/JPY Technical Strategy: Flat
- Support: 101.85 (23.6% Fib ret.), 100.75 (Feb 2 low)
- Resistance: 102.53 (38.2% Fib ret.), 103.08 (50% Fib ret.)
The US Dollar is stalling against the Japanese Yen. A break above the 38.2% Fibonacci expansion at 102.53 on a daily closing basis exposes the 50% level at 103.08. Alternatively, a turn back beneath the 23.6% retracement at 101.85 aims for the February 4 swing low at 100.75.
Prices are narrowly wedged between immediate up- and downside technical barriers, arguing against a trade on the long or short side from a risk/reward perspective. Furthermore, the Yen’s sensitivity clouded risk appetite trends warn against taking directional bets on fundamental grounds. We will continue to stand aside for now.
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Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for DailyFX.com