Richard Perry
Independent Analyst
Whilst it is necessary to talk about potential breakdowns during consolidation phases, it is important not to call a correction until one has actually been triggered. This is the situation we have found with Dollar/Yen, as the dollar bulls have returned once more above the support at 117.00 to leave a near term low at 117.22. The MACD lines have given a bearish crossover which is a concern for the immediate prospects of the bull run, however, the RSI closed yesterday above 70 and Stochastics are yet to give a similar crossover confirmation (for now). This leaves me with a cautious outlook and the consolidation continues. Whilst the resistance at 118.57 remains intact on the intraday hourly chart the immediate chart outlook is difficult to call and perhaps we can just play the range for now whilst the battle of the bulls and the bears continues.
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