Richard Perry
Independent Analyst
USD/JPY
The dollar bulls look rattled after the FOMC decision last week, but have managed to pick themselves up and string together two positive sessions. The prospects of a third positive session today are also good. A reaction straight back up through near term resistance 108.25/108.50 on the hourly chart has taken the market back up into a more positive near term configuration. The bulls will be keen to retain this momentum for a test of the 109.00 key medium term resistance area. Given the recent failures at this resistance, it would be a significant achievement to breakout. However, daily momentum studies retain their ranging configuration and we feel it unlikely at this stage. The band 108.25/108.50 turns back supportive today.
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