Richard Perry
Independent Analyst
The support came in yesterday to bolster the 38.2% Fibonacci retracement level at 123.20. However for now the bulls continue to sit on their hands, with the rebound finding resistance around 123.80 and failing to ignite. There is a danger that this could develop into a downtrend channel as this is another lower high that has come in underneath the 124.20 peak from 23rd July (this is something that would also be in keeping with the Stochastic sell signal that is now confirming on the daily chart too). I see the likelihood being that this is more of a consolidation phase in front of the FOMC with Dollar/Yen buzzing between the Fib retracements again. On the FOMC meeting tonight, watch for the key levels at 124.48 being resistance, whilst 123.00 is supportive. A confirmed break of either of these will cause direction.
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