Richard Perry
Independent Analyst
The dollar rally really took hold yesterday and dragged Doll/Yen through initial resistance at 101.60. The next barrier to a recovery around 101.80 still seems to be doing a job though as the recovery has begun to stall slightly overnight. There has been a slight pick-up in the momentum indicators due to this rally but there is still a bearish configuration and a feeling that this rally will ultimately be sold into. The falling 89 day moving average (now just above 102.00) has been the limit to the early July rally, whilst 102 is also a historic pivot level. I have said previously that the resistance band 101.60/101.80 was a sell-zone and perhaps a little speculative sell would not be the worst idea. The negative configuration on all the daily technical indicators suggests that selling into strength remains the best strategy for a retest of the lows around 101.00. The major near to medium term resistance comes around 102.30.
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