USD/JPY: The downside pressure continues to mount [Video]
|USD/JPY
The dollar rally has petered out fairly meekly as the pair has completed two successive negative configuration candles. The early selling once more today shows that the downside pressure continues to mount. Momentum indicators are also already falling over, with RSI faltering under 40, a cross lower on Stochastics and MACD lines again waning. The key overhead resistance of 106.00/106.60 has played a decisive role in the supply of sellers. The hourly chart shows a break under 105.50/105.55 support to renew a run of lower highs and lower lows, leaving 105.90 as a pivot and first lower high of note. Hourly indicators are increasingly correctively configured again, with hourly RSI faltering in the 50/60 area to suggest that even near term bounces are a chance to sell now. A break under the next support at 105.30 would add momentum to the developing negative move. If seen on a closing basis if would then open a retest of the recent low at 104.17.
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