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Talking Points:
- USD/JPY Technical Strategy: Flat
- Support: 102.11 (23.6% Fib exp.), 101.53 (channel floor)
- Resistance: 102.60 (38.2% Fib exp.), 103.00 (50% Fib exp.)
The US Dollar continues edge upward against the Japanese Yen after turned higher as expected having produced a bullish Morning Star candlestick pattern. Prices are probing above the 38.2% Fibonacci expansion at 102.60, with a break above this barrier on a daily closing basis targeting the 50% level at 103.00. Alternatively, a reversal back beneath the 38.2% Fib at 102.11 aims for the bottom of a rising channel set from early February, now at 101.54.
Prices are too close to relevant resistance to justify a long position from a risk/reward perspective. We will remain flat for the time being, waiting for a more attractive setup to present itself.
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Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for DailyFX.com