Richard Perry
Independent Analyst
USD/JPY
A slide back on the dollar took pause for thought yesterday with a mild positive candlestick on Dollar/Yen. This helps to build up the importance of the support around 108.50 (the old September resistance). Although momentum has lost its impetus in the past few sessions, the continued reaction around the old September highs will be an important gauge. There is still a likelihood that this is part of a broad range play between 106.50/109.00. Given the point at which momentum indicators have rolled over, the current outlook has the hallmarks of a mild positive near term bias within a building medium term consolidation. The game changer would be a decisive breakout above the key resistance at 109.00. The next couple of sessions could be a strong gauge as to the potential for this. The bulls beginning to take control again today would be a start in this. Initial support at yesterday’s low at 108.30, whilst a move under 108.00 would once more neutralise the outlook.
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