Richard Perry
Independent Analyst
The pair completed a fifth consecutive negative candle yesterday but despite this there was an element of slowing in the selling pressure and there is still a sense that Dollar/Yen continues to trading in a sideways phase between 118.30/120.85. The momentum indicators on the daily chart are still rather neutral, although there is a slightly negative bias of late due to the last week of declines. The interesting chart is the hourly intraday, which shows a consolidation over the past 36 hours between the reaction low support at 118.70 and the key pivot level within the range at 119.40. The break either way of this mini range could determine the next move. For now I am neutral and see the sideways trading continuing but continued downside pressure would mean a big test of 118.30 again. Hourly momentum is still in negative configuration. It might be interesting to watch the falling 55 hour moving average (currently 119.20) which has been a resistance in the past few days. A breach of this to the upside could signal a lack of intent by the bears to keep going.
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