Richard Perry
Independent Analyst
The recovery in Dollar/Yen has continued overnight and is pushing on the old pivot level around 102.00. The intraday hourly chart shows that the break above resistance at 101.80 has been a key near term move. The outlook has become more dollar positive with the break and there is now a tendency for the corrections into the 101.70/101.80 support area to be bought into. This near term improvement is also backed by the hourly RSI and MACD indicators. The question is, that into the eighth day of recovery, in a pair that historically has been unable to put any real strong of gains together without a retracement, how much further can this go? The 89 day moving average (now 102.03) has capped the previous two recoveries and there is significant overhead resistance around 102.30. It might be prudent to stay close to the profits of any long positions as the sellers could easily return once more. A move back below 101.70 support would probably signal the end of this bull phase.
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