USD/JPY: The rally rolling over around 109.30 leaves the move at a key stage today [Video]
|USD/JPY
The dollar rebound of the past few sessions has just run out of steam slightly this morning. We have been discussing recently whether the recovery on Dollar/Yen would be a renewed run higher or fizzle out into a consolidation. The rally rolling over around 109.30 (which is also around an area of overhead supply) leaves the move at a key stage today. Daily momentum indicators have been left in limbo as they are quickly tailing off recovery moves around their neutral points. The importance of what is increasingly becoming a pivot around 108.70 is also growing. Having previously been resistance it is now supportive this morning and can be considered a gauge for the recovery. A failure under 108.70 turns this into a consolidation, whilst back under 108.15 gives the market more of a negative bias once more. Hourly RSI needs to hold up above 40 and hourly MACD ideally above neutral to sustain any semblance of positive bias still. The move now needs to hold 108.70 and then pull above 109.30 resistance to continue the recovery. A key crossroads for the near term outlook on Dollar/Yen.
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