Monday, December 29, 2014

USD/JPY Technical Analysis: Direction Sought Near 120.00




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Talking Points:



  • USD/JPY Technical Strategy: Flat


  • Support: 119.48, 117.98, 115.55


  • Resistance: 121.91, 123.88, 125.84


The US Dollar is treading water near the 120.00 figure against the Japanese Yen as prices wait for clear-cut direction cues. A daily close above the 38.2% Fibonacci expansionat 121.91 exposes the 50% level at 123.88. Alternatively, a turn below the 23.6% Fib at 119.48 clears the way for a challenge of the 14.6% level at 117.98.



Entering long seems compelling from a technical perspective, but we will tactically opt not to pursue the position. We suspect a Yen recovery may be ahead, warning against taking bets on the currency’s decline. As such, we will remain flat for now.



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USD/JPY Technical Analysis: Direction Sought Near 120.00


Daily Chart – Created Using FXCM Marketscope



— Written by Ilya Spivak, Currency Strategist for DailyFX.com





USD/JPY Technical Analysis: Direction Sought Near 120.00

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