USDJPY: Support at 103.50/103.20, resistance at 104.17/104.43

ANALYSIS | 08/28/2014 12:10:58 GMT

The potential for a correction is growing as the Dollar/Yen just begins to slide back once more. A drift back towards a test of the support at 103.50 is being seen and this would be the first real test of the credential of the bulls. I still see this as a healthy near term move as the strong momentum begins to unwind to help renew upside potential. The RSI is on the brink of a crossover below 70 but I do not see this as a big sell-signal as I believe that the outlook has changed in the past week or so. I do not see this as the beginning of a big retracement, more that this is a move that the bulls will be looking to form support between the key breakout support around 103.00 and 103.50. There could be an opportunity for the brave to see a shorting opportunity, but I would prefer to trade with the new trend (which I believe is higher) and I will be looking for an opportunity to buy on support.

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