The US Dollar paused to digest below the 120.00 figure after posting the
largest daily advance in seven weeks against the Japanese Yen.
Near-term resistance is at 119.48, the 23.6% Fibonacci expansion, with a
break above that on a daily closing basis exposing the 38.2% level at
121.91. Alternatively, a turn below the 14.6% Fib at 117.98 opens the
door for a challenge of the December 16 low at 115.55.
|121.91 ||115.55 |
|123.88 ||114.13 |
Risk/reward considerations argue against entering long with prices in close proximity to resistance. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short side is premature. We will remain flat for now, waiting for a more actionable opportunity to present itself.