Richard Perry
Independent Analyst
USD/JPY
The outlook for Dollar/Yen has been steeped in uncertainty recently, but this morning there seems to be a negative bias developing. For the past seven sessions, there have been alternating positive and negative candles, with the market consolidating above support at 106.60. However, a decisive early breach of 106.60 support is a four week low and now opens a test of the key medium term range floor at 106.00. Momentum indicators are making notable deteriorations too. If the RSI closes below 40 it would be a signal for the bears to increasingly take control. We continue to note how support between 106/107 has been a consistent feature of the trading range over the past four months, but with this latest development, negative pressure is mounting. A decisive close below 106.00 would be a big outlook changing move and open initially 105.00 but potentially the March spike low of 101.20 comes into play. Resistance is mounting between 106.60/106.90 and is a near term Sell zone now.
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