Richard Perry
Independent Analyst
There has been a complete turnaround in sentiment on Dollar/Yen since early Monday morning in the hours after Japanese GDP had so disappointed (although you would hardly notice it on the daily chart). Since then we are back to slow and steady gains with momentum indicators extremely strong and showing little sign of any let up in the bull run. The rate has once more overnight broken out to new multi-year highs and is on the way towards 117.95 (October 2007 resistance). However on the Fibonacci projection previously calculated, the 161.8% level comes in at 119.07 and is a viable target area still. The intraday hourly chart shows the hourly RSI moving up towards 70, which over the course of the past few days has tended to result in the intraday moves running out of steam. Subsequently perhaps chasing Dollar/Yen at these levels may not be the best plan, perhaps waiting for an intraday dip into the support band 116.35/117.00. This would allow any immediate overbought momentum to be unwound and upside potential renewed. Key near term support is now 115.44.
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