USD/JPY: the bulls have lost control with a confirmed breach of the uptrend [Video]

USD/JPY

The price action on Dollar/Yen in the last couple of sessions will have given the bulls an increasing cause for concern. Given the breaches of the old 11 week uptrend are increasingly common, Monday’s failure around 109.05 (around the resistance band 109.00/109.50) has since been followed by a couple of negative candles. Tuesday’s negative candle really does now suggest the bulls have lost control with a confirmed breach of the uptrend. Although the momentum indicators are all still positively configured on a medium term basis, they are turning corrective on a near term outlook. The focus is now on the support at 108.25 which if breached (especially on a closing basis) there would be a run of lower highs and subsequently lower lows. This would be the early development of a new downtrend. Already we see o the hourly chart a more corrective configuration forming on hourly RSI and also hourly MACD. Below 108.25 opens the next key low at 107.85 which is the key near to medium term support. Initial resistance now 108.65/108.85.