Richard Perry
Independent Analyst
With the rally of the early part of the week now running out of steam this becomes an important moment for Dollar/Yen. If little has actually been achieved by the outlook then this will turn out to be another top within the range. That would mean that the sellers will once again control the price action for the next couple of sessions as the price mean reverts back towards the pivot at 119.40 around which much of the price action seems to have gravitated around for the past few months. However, The intraday chart shows a series of resistances which were broken by the rally and these should now start to become supportive if the bulls have turned a corner. The old breakout at 120.84 looked to be holding yesterday but this has been breached early today, so this now leaves 120.50 as the key level. Breaking this support would suggest there is little appetite for the bulls to push Dollar/Yen back towards the highs around 122.00 again. The intraday momentum indicators are now fully unwound and further downside would turn them corrective once more. An important day within the range.
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