USD/JPY: There is a slight loss of momentum [Video]
|USD/JPY
For about a week now we have been speaking about the consistent theme of buying into intraday weakness on Dollar/Yen. This was in evidence once more yesterday as another positive reaction to early selling pressure came through into the close. However, there is a slight loss of momentum as two of the past three sessions have consolidated and “doji” candlesticks (open and close at the same level) have formed. This has seen RSI and Stochastics begin to tail off. The market is ticking mildly higher this morning and there is still a positive bias to the recovery, albeit only slight now. It could be that the closer the recovery gets to the three month downtrend and 55 day moving average (both at 105.90) and the medium term pivot at 106.00, the less downside potential there is and the move loses steam. Additionally, the RSI is now around 50, where previous rallies of the past few months have begun to dissipate. Initial resistance at 105.70, whilst support is still in place between 105.10/105.30.
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