Richard Perry
Independent Analyst
USD/JPY
Once more the intraday swings have rendered attempted moves to break the consolidation on Dollar/Yen as futile. After two almost equal but oppositely configured daily candles, once more we find little sustainable direction or signal from the pair. The resistance at 108.15 remains untouched as a key level around the mid-point of a more than three month trading range (106.00/109.85). It comes as momentum indicators drift aimlessly around neutral configurations. There is an initial hint of a tick higher today and perhaps some direction could be derived if there were to be a closing breach of resistance at 107.75 (of the last couple of sessions), however, the number of failed moves leaves us very wary of calling direction without decisive confirmation. In the least, the market needs to build support above 107.20 (the lows of the last couple of sessions) to begin to generate some sort of confidence in an outlook. Realistically, only a closing move above 108.15 would be worthy of backing decisively to the upside. We remain sceptical.
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