USD/JPY: 105.90/106.00 is becoming an area of pivot resistance now [Video]

Richard Perry Independent Analyst

USD/JPY

The rally on Dollar/Yen has been struggling to hold its ground in the past couple of sessions, and it is interesting to see the move faltering around the overhead supply between 106.00/106.60. Monday’s candlestick had a sense of bull failure with it, especially now followed by yesterday’s mildly negative session. We continue to view this move as being a technical rally into resistance before the next selling phase emerges. The hourly chart shows 105.55 (Monday’s low) has all but held overnight, but a decisive move back below would effectively re-engage the negative pressure. Below 105.30 would re-open 104.17 once more. On a near term basis 105.90/106.00 is becoming an area of pivot resistance now as rallies increasingly struggle around the old key 106.00 floor. We favour a test of the 104.17 low in due course.

Author

Richard Perry

Independent Analyst

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