USD/JPY: The run of lower highs and lower lows continues [Video]
|USD/JPY
Once more, another intraday rally failure during yesterday’s session has maintained Dollar/Yen on the corrective path lower. A sixth successive negative close and another negative candle is ramping up the downside momentum now. With Stochastics and RSI falling below 50, a MACD bear cross adds to the growing negative picture. The market is set up for a test of the support around 106.50 (old key October low) and 106.70 (50% Fibonacci retracement of 112.20/101.20). We have spoken in recent days of the market breaking back below the support at 107.10 and doing so yesterday, continues the run of lower highs and lower lows, and leaves the way open for further weakness. The hourly chart shows negative configuration on momentum whilst with further downside potential. The support at 105.15 looms into view. Breaking below 107.10 also means that 108.70 is now a near term key lower high, with initial resistance at 107.95. We look to use intraday rallies as a chance to sell today.
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