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Talking Points:
- USD/JPY Technical Strategy: Flat
- Support: 101.32, 100.75, 100.38
- Resistance: 101.64, 102.25, 102.71
The US Dollar remains locked in choppy consolidation range above the 101.00 figure against the Japanese Yen. Near-term support comes in at 101.32, marked by a horizontal pivot capping the downside since early February and the floor of a large Triangle chart pattern. A daily close below that exposes swing lows in the 100.75-81 area. Alternatively, a reversal above near-term resistance at 102.25 opens the door for a test of 102.71, the intersection of the Triangle top and a two-month range top.
Congested positioning and lackluster follow-through make for a difficult trading environment. With that in mind, we will remain on the sidelines and wait for a break out of the Triangle to yield clarity and establish a directional bias.
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Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for DailyFX.com