USD/JPY: Increasingly negative outlook [Video]
|USD/JPY
USD weakness really took hold yesterday as the session wore on. This drove a decisive bear candlestick into the close, pulling Dollar/Yen way below the 106.00 pivot. It now takes on an increasingly negative outlook within the 105.10/107.00 range of the past six weeks. A decisive close below 105.75 implies pressure on 105.10. However, given a sharp deterioration in momentum indicators (with downside potential), a move back towards 104.15 would be the risk if 105.10 were to be breached now. It will be interesting to see the reaction of the bulls now. Previously throughout recent weeks, the market has been consistently gravitating around the 106.00 pivot, so today’s reaction to such a decisive negative session yesterday will be seen as a gauge. We would see 105.75/106.00 as a near term resistance band now, and already this morning we see this is becoming a barrier. Resistance is mounting overhead and we can now add 106.30 to 106.50 and 107.00 as resistance.
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