Richard Perry
Independent Analyst
Blink and you would have missed it. Any corrective force from a strengthening yen has been reversed and Dollar/Yen is once more looking to retest the highs again. The daily chart shows two consecutive candlesticks of long lower tails and a close near the high, suggesting a lack of conviction in the bears and some good support coming in at 108.24. I had expected a near term correction that would ultimately be another chance to buy, but it seems as though the bulls have fought hard to maintain their gains, keeping intact the strong trend through September. Another impressive aspect is the strength of the momentum indicators which are incredibly bullish. Any correction should be seen as a chance to buy, with the 4 week uptrend support now coming in at 108.10, while the intraday chart shows good support around 108.50. Expect further pressure on 109.45 resistance and then on towards the 110.65 high from 2008.
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