USD/JPY: a huge intraday rebound from 107.65 [Video]
|USD/JPY
We were discussing recovery potential of Dollar/Yen yesterday morning, but the move really got going as the session developed. A huge intraday rebound from 107.65 not only bolstered what is now a band of key support 107.65/107.85 but also formed a huge bullish engulfing candlestick. With the posting of three positive candles in a row, this suggests that positive momentum is driving the market higher within the three month trading band again. The bulls have also broken the market decisively through 108.85 now (the first lower high of the January correction) and above the old 109.00 pivot. This is a strong indication of a continued move back towards the 109.70 band high will be developing now. Momentum has also shifted, with the Stochastics posting a buy signal (at least one per month for the past three months) which has tended to be the precursor to a move towards the range highs again. A near term support band is between 108.85/109.00.
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