USD/JPY: Key resistance remains 106/107 [Video]

Richard Perry Independent Analyst

USD/JPY

The dollar failed to get any traction out of the yen in the wake of the FOMC decision (largely due to the subdued moves on US Treasuries). Although there has been a basis of support forming overnight on USD/JPY, yesterday’s closing breach of 105.10 is an important break. It completes a range breakdown of just under 200 pips and certainly opens pressure on 104.15. The apparent lack of dollar rebound plays into this. Technical momentum indicators swinging lower with downside potential suggest that near term rallies are a struggle now. The hourly chart shows resistance mounting at 105.30/105.55 as an intraday sell-zone under the more considerable resistance 105.75/106.00. Initial support is at 104.80 but we expect 104.15 to be tested in due course. Below that there is minor support at 103.10 before the March spike low at 101.17. Key resistance remains 106/107.

Author

Richard Perry

Independent Analyst

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