Richard Perry
Independent Analyst
The neutral and I might add, uncertain, outlook for Dollar/Yen is a key feature of the daily chart. The sequence of six bearish candles and a decline of 230 pips is now being undone by a retracement of two bullish candles that has unwound over half of the decline already. What I am alluding to is that there is a lack of medium term direction on the pair which results in little overall decisive move. In fact, even on the daily chart you can get a gauge of the role that the 119.40 pivot level is playing. This level has come to symbolise the uncertain movement in recent weeks. Daily momentum is very neutral, with only a hint of bullish bias near term as the Stochastics are rising. The hourly chart shows the 119.40 pivot in greater detail and once again this looks to be the level to watch today. A slight bearish divergence on the hourly Stochastics are now suggesting loss of impetus (so therefore conflicting with the daily Stochastics). Support levels come in at 119.14 and 118.50. Yesterday’s high at 119.80 is immediate resistance.
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