USD/JPY: The recovery has just had the pause button pushed [Video]
|USD/JPY
The recovery in Dollar/Yen has just had the pause button pushed this morning as the market has initially ticked back lower. The bull response to this may give an insight as to the psychology of the bulls early this week. Throughout last week, intraday weakness during the European session was repeatedly bought into as the US session took hold. This drive the market to five consecutive positive closes. We have been expecting a recovery towards the three month downtrend and 55 day moving average (currently around 106.95), whilst 106.00 is an old pivot level. Holding support in the band 105.10/105.20 will help to sustain the recovery potential. However, if we start to see early weakness confirmed into the close of the session, this could suggest that the dollar rebound is losing its way. Closing under 104.85 would confirm this. Initial resistance now at Friday’s high of 105.70.
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