Hitting a peak at 103.96, Dollar/Yen spent much of yesterday in consolidation mode. However, coming after such a strong run higher may not be such a bad thing. The RSI remains well over 70 and despite the strong momentum, this puts it at risk of a near term correction. The initial support comes in around 103.60 and a breach would just complete a small top pattern that would imply a near term retreat back towards the next intraday support at 103.20. If Dollar/Yen can sustain a small consolidation or even correction then the dollar bulls will gain confidence and start to believe this is a key breakout that suggests that a move above 104.12 and subsequently towards 105.00 can be seen. Above 104.12 opens the upside.
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