Richard Perry
Independent Analyst
Although Dollar/Yen is a little less obvious in its range play, the lack of conviction and inability to sustain a breakout is similar to Cable. The upside pressure on what was originally the resistance at 124.43 has been growing over the past few weeks and although a couple of intraday breaches have been seen, there has been no conviction breakout. The resistance remains a barrier. Interestingly there are variances in the momentum indicators, with the RSI remaining stuck under 60 (but still putting pressure on), whilst the Stochastics are quite firmly in decline. The Stochastics are certainly preventing a positive outlook on the pair, whilst yesterday’s “doji” candle reflects the uncertainty as well. Without a decisive close above 124.58 now the bulls will not be able to have the control (which I also see needs the RSI closing consistently above 60). The lower highs at 124.37 and 124.27 are not helping on the hourly chart. This one could need a catalyst to make the break.
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