USD/JPY: There is still no sign of a technical rally [Video]
|USD/JPY
A technical rally had been threatening yesterday morning, but the yen strength seems to be increasingly taking hold now. With the consistent selling pressure on the dollar, there is still no sign of a technical rally. The breakdown below 106.00 was a key move which implies potentially back towards 101.15 in the coming months. On a nearer term basis, the intraday rallies are still struggling for traction as there has been a decisive shift in momentum. The RSI below 30 is a signal of intent (got to 19 back in March), whilst MACD lines and Stochastics are accelerating lower. This is a decisive bear move developing now, with little real support until 101.20, the key March low. How the market responds to FOMC announcement will be interesting, but even if there is an unwinding move, we would be looking for this to be near term and look for renewed sell signals around 106.00.
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