Richard Perry
Independent Analyst
Although Dollar/Yen is apparently under downside pressure, there is no consistent run of losses that the sellers can get their teeth into, because there always tends to be a recovery that takes hold. The problem for the bulls is that the recoveries tend to only last for a few days before the downside resumes again. This is likely to be the situation once again. A rally is into its third day now but it is once again being faced by the barrier of the falling moving averages (the 21 day ma now at 101.61 capped the most recent bounce, while the 89 day ma at 102.05 capped the early July bounce). Also the momentum indicators are all in bearish configuration and just look as though any rallies are a chance to sell. The intraday chart shows a resistance band 101.60/101.80, with anything up to around 102.00 likely to be a good chance to sell. Expect further pressure on the recent lows 101.08 and below in due course.
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