Richard Perry
Independent Analyst
The incredible volatility saw Dollar/Yen spike down to 105.18, which means that in the space of just over 2 weeks, the pair has corrected almost 5% from its 110.08 multi-year high. The implied target from the top pattern completed below 108.00 has been achieved at 106.00 so I am now looking for the basis of support for a medium term buy signal. This signal is beginning to develop too, with a bull cross on the Stochastics, although we must wait for confirmation (a cross back above 20). Also RSI and MACD continue to fall so with such a big call there would need to be multiple confirmation. For now though the near term outlook needs to settle down after yesterday’s sharp decline. Overnight there has been some support forming at 105.58 above the 105.18 low. With initial resistance now until 106.65 there is room for an unwinding move.
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