The huge breakout on Dollar/Yen has the impetus behind it. The move has now resulted in a break above the key 2007 high at 124.15 (albeit briefly overnight). The daily momentum indicators remain strong and are backing the move. There is a slight caveat coming into the European session with a correction off the high overnight. I am also aware that the hourly chart is now showing a series of bearish divergences with the highs in recent days, especially on the RSI and MACD lines. This would suggest that perhaps the impetus in the move higher is beginning to slow down. If the hourly RSI begins to drop below 50 and the MACD lines fall to a new 3 day low this could be a signal of a change in sentiment now. A drop below the support band at 123.30/123.50 would also be a sign. Near term support below there comes at 122.75 and 122.50 before the big breakout level at 122.00. Essentially above the overnight high at 124.28 there is no real resistance until the 125.70 upside breakout implied target.

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