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Talking Points:

• USD/JPY Technical Strategy: Flat

• Support: 120.82, 119.62, 117.17

• Resistance: 122.48, 123.88, 125.84

The US Dollar may be readying to turn lower against the Japanese Yen after prices put in a Shooting Star candlestick. A daily close above the 121.84-122.48 area (December 8 high, 38.2% Fibonacci expansion, channel top) exposes the 50% level at 123.88. Alternatively, a turn below resistance-turned-support at 120.82, the December 23 high, opens the door for a test of the channel floor at 119.62.

An actionable trade setup is absent at this point, arguing against committing to a directional bias on long or short side. We will continue to stand aside for now, waiting for a clear-cut trading opportunity to present itself in the days ahead.

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Daily Chart - Created Using FXCM Marketscope

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

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