Wednesday, April 29, 2015

USD/JPY Technical Analysis: Waiting for Event Risk Cues




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Talking Points:



  • USD/JPY Technical Strategy: Flat


  • Support: 118.79, 118.45, 117.91


  • Resistance: 119.32, 119.85, 120.73


The US Dollar continues to tread water at support above the 119.00 figure against the Japanese Yen as pivotal event risk looms ahead. Near-term support is in the 118.79-88 area (April 6 low, 50% Fibonacci expansion), with a break below that on a daily closing basis exposing the 61.8% level at 118.45. Alternatively, a move above the 38.2% Fib at 119.32 clears the way for a test of falling trend line resistance at 119.85.



Risk/reward considerations argue against entering short with prices in close proximity to support. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long side is premature. We will remain flat for now, waiting for an actionable opportunity to present itself.



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USD/JPY Technical Analysis: Waiting for Event Risk Cues


Daily Chart – Created Using FXCM Marketscope



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





USD/JPY Technical Analysis: Waiting for Event Risk Cues

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