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- USD/JPY Technical Strategy: Flat
- Support: 101.12 (falling channel floor), 100.81 (May 21 low)
- Resistance: 101.75 (rising channel bottom), 102.02 (falling channel top)
The US Dollar managed the largest daily increase in close two months in a bid to launch a recovery against the Japanese Yen. Prices are re-testing the underside of a recently broken rising channel at 101.75, with a break above that on a daily closing basis exposing the upper bound of the near-term down trend at 102.02. Downward-sloping support is now at 101.12, with a reversal below that targeting the May 21 low at 100.81.
Risk/reward considerations argue against taking a trade at present withprices wedged too closely between near-term up- and down-side technical barriers. We will continue to wait on the sidelines for the time being.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com