Richard Perry
Independent Analyst
The dollar rebound has progressed over the past few days closing a third straight day with a positive candle (coming after 6 straight negative candles). This is all still part of the general range play on Dollar/Yen though. The one common theme though is still the use of the 119.40 pivot level and whilst the pair is trading above it (as it is currently) then the near term outlook will have a bullish bias. Hourly momentum indicators show a more positive configuration too. The strong close last night has been followed by a fall overnight (despite the weaker than expected Japanese flash manufacturing PMI) which has left a reaction high at 120.10. This fall though could give a near term opportunity to buy today. With the pivot at 119.40 and price support at 119.30 over the past couple of days this dip could be a chance to buy near term for the continued move back towards the 120.84 key reaction high. Continue to play the range.
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