Richard Perry
Independent Analyst
The battle for control of the near term outlook continues as a bearish candle (in the mould of a shooting star) reversed the gains of early yesterday to once more clip the wings of the buyers. However today’s follow up candle now becomes key. There was not a great deal of bull run to stage a reversal pattern like a shooting star so I see this as more of as part of a choppy range play move rather than an outright sell signal. If today’s candle is more of a consolidation move then it appears unlikely that any real selling pressure will be imminent. The intraday hourly chart continues to be dominated by price pivots and Fibonacci levels. The peak move yesterday came at 123.72 which is around an old resistance level within the range, whilst I remain very interested in the 123.20 Fibonacci level which is 38.2% of the 118.86/125.85 rally. This is a key pivot level within the range and can be traded around near term. The hourly momentum indicators have unwound to neutral and it looks as though Dollar/Yen is looking for its next catalyst.
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