The US Dollar is treading water against the Japanese Yen after setting a swing low near the 101.00 figure. A daily close above resistance at 102.84, the 23.6% Fibonacci expansion, targets the 38.2% level at 104.14. Initial support is at 101.38, the
Positioning may be in the process of producing an Ascending Triangle chart pattern, a setup indicative of bullish trend continuation, but confirmation is absent for the time being. Furthermore, a strong link between USD/JPY and the 10-year US Treasury yield (0.80 on 20-day percent change studies) warns against committing to a direction before the upcoming release of US CPI data. We will continue to stand aside for now.