USD/JPY: Is there a sense of slowing in the selling pressure? [Video]

USD/JPY

Is there a sense of slowing in the selling pressure on Dollar/Yen? Since the market topped out at 112.20 a week and a half ago, there has been a corrective move of over -500 pips at yesterday’s low around 107.00. However, a positive candle and a positive close yesterday will give the bulls some hope that a corner may have been turned. It seems that this is a crossroads moment as the market trades inside a band of old key support between 107.65/108.30 (old key lows). It comes as the RSI is again around the low to mid-30s where the two key lows of January were posted, whilst the Stochastics are threatening to bottom out. However, the bulls still have a job on their hands, as the market has again dipped back lower early today. Initial support at 107.65 is holding, but a breach (certainly on a closing basis) would re-open yesterday’s low around 107.00 and the key October low at 106.50. Given that intraday highs are being posted around 108.50/108.60 the bulls need a close above this area to suggest traction in a recovery.