Richard Perry
Independent Analyst
On Friday we saw the completed turnaround of the outlook. Having been in correction mode for a week and a half the bulls returned with a bang in the wake of the FOMC and the prospect of a top pattern dragging Dollar/Yen lower has been removed. Friday’s move above 119.55 which was the right hand shoulder has now aborted the top and should now see the bulls regain control for a test of the highs. The lack of a close above 119.55 is a slight concern but the daily momentum indicators have now bottomed and looking on the intraday hourly chart the sequence of higher lows suggests renewed appetite for the bulls. Initial support comes in at 118.82 and then at 118.23. If the rate can now look to settle it would suggest a new acceptance at these levels and the bulls can begin to look back towards the next overhead resistance at 120 and 121.
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