Richard Perry
Independent Analyst
USD/JPY
Once more we are seeing this morning that even the slightest hint of direction on Dollar/Yen is being countered. An intraday retracement of yesterday’s mild negative candle is neutralising signals for direction. It seems to be very difficult to take anything out of moves on Dollar/Yen when the market is so devoid of any conviction. Technically, we are minded to still point out the negative implications of the bearish engulfing candle from last week. This is still the primary near term factor, leaving resistance as a key barrier at 108.15. As the market rallies this morning, the bulls will be looking to move above yesterday’s high of 107.75 to build pressure on 108.15 again. The hourly chart shows that this is still simply part of a near term ranging consolidation, with hourly RSI oscillating between 30/70. The range is now playing broadly 50 pips between 107.25/107.75. Closing outside this range could begin to form direction, but we remain very neutral on Dollar/Yen right now.
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