Richard Perry
Independent Analyst
After several days of consolidating and testing the support band 119.20/119.40 the bears have finally won the argument and the support has been decisively breached. This has now re-opened the next key support band 118.15/118.30. This is an important development on the daily chart as it has taken the pair below the rising 89 day moving average for the first time since August. So for the first time in months the trend is beginning to deteriorate. This continues the medium/longer term sideways trading outlook on the chart that has been in place for the past few months and Dollar/Yen could easily now be turning into a choppy range play for the next few months. On a daily chart I would be inclined to see this near term corrective phase playout with some supports along the way at 117.90 (the 23.6% Fibonacci retracement of the 105.18/121.84 rally) also a potential area of consolidation.
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