The Japanese Yen is launching a swift recovery against the US Dollar after putting in a Hanging Man candlestick, with USD/JPY on pace to issue largest drop in eight days. A break below support at 101.59, the 23.6% Fibonacci expansion, targets the 38.2% level at 100.90. Near-term resistance is at 102.69, the
A short position at current levels looks unattractive from a risk/reward perspective as prices trade squarely at relevant support. On the other hand, a long trade seems premature absent confirmation of reversal. On balance, we will remain on the sidelines for now.