USD/JPY: Little directional moves make it difficult to trade with conviction [Video]

USD/JPY

A small positive candlestick has continued the run of contradictory candlesticks and uncertainty over the near term outlook on Dollar/Yen. Although we are still none-the-wiser over the direction of the next breakout, there is a slightest shade of dollar strength (or should that be yen weakness) that is forming as the price ticks higher again early today. This is backed by RSI and MACD edging higher and Stochastics positively configured around 80. However, these indications are still very minor on the daily chart and have little direction either on the hourly chart, that they are difficult to take with any real conviction. Resistance remains in place around 108.0/108.10 and until this is breached it is very difficult to get overly excited about moves on Dollar/Yen. Over the course of recent weeks, we have a mild preference for upside (certainly whilst broad market sentiment remains risk positive), and support continuing to hold at 107.30 underpins this. However, this remains a market that lacks any conviction or drive for a breakout. Above 108.10 the next resistance is 109.10/109.40. Under 107.30 would once more neutralise the outlook.