Richard Perry
Independent Analyst
USD/JPY
In breaking a 14 week uptrend the bulls have once more lost control. Once more an attempted breakout above 109.00 has failed. It is also interesting to see that the old 109.00 level has become resistance in the past couple of sessions as the bulls have struggled to re-assert themselves again. It is though important to say that there is still a run of higher lows that have helped to form the old uptrend. The rising 55 day moving average (today at 108.45) has been a basis of support throughout the past five weeks. We also see the momentum indicators marginally positively configured, with the RSI between 45/65, MACD above neutral and Stochastics consistently holding above 20. So whilst 108.25 (the first key higher low) remains intact, the bulls will still be in the driving seat (even if the engine keeps spluttering). A close back above 109.00 would re-open the 109.50/109.70 resistance.
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