USD/JPY: The buying pressure to pull the market off this floor is still lacking [Video]
|USD/JPY
Whilst we have been discussing the tendency for support to continue to come in the band 106/107 in recent months, the buying pressure to pull the market off this floor is still lacking. There have been hints of improvement in momentum in the early part of this week, with Stochastics picking up, but they need to find traction to suggest this is a noteworthy bull cross. Seeing the RSI sustainably above 50 would be something that the bulls could get on board with, and so to see RSI ticking this way early this morning, along with Stochastics rising off a bull cross is encouraging. There is still an appetite to support Dollar/Yen under 107.00, so the potential for a move above 107.40 resistance which would open a near term rebound, is still growing. A close above 107.40 implies a rebound to test the 108.15 July rebound high. Although yesterday’s intraday move to 107.50 could not be held into the close, the market is beginning to test these levels as the bulls form a series of higher lows on the hourly chart. Support is growing once more around 106.90/107.10.
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