Richard Perry
Independent Analyst
It would appear that even the FOMC statement has been unable to shake Dollar/Yen out of its consolidation phase which is now into its eighth day of trading in the band 117.20/118.90. The daily indicators are increasingly benign however it is noticeable that there has developed a very slight negative tilt (albeit only marginal). This is perhaps showing through on the intraday hourly chart more, as despite the fact that the pair is trading within a range, there has been a very slight sequence of lower highs in the past week, with yesterday’s peak at 118.25 the latest. It is becoming less obvious that you can use the classic RSI buy/sell signals too on the hourly chart as the it is beginning to sit far more consistently below 60. This is another suggestion of the slightly bearish tilt. Pressure is mounting on the support at 117.20 and even though the support remained intact in the wake of the FOMC statement, there is a definite sense of bearish influence growing. A decisive breach of 117.20 would re-open the 115.80 low.
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