USD/JPY: bulls have now only “filled” the gap at 109.15 [Video]
|USD/JPY
A strong dollar performance coupled with a decent return of risk appetite later in yesterday’s session has halted a run of negative candles on Dollar/Yen. Interestingly this has enabled the RSI to pick up again around the 40/45 area where lows of recent months have been seen. We have been discussing the support band 108.50/109.00 in recent days and finding support around 108.70 in both of the sessions this week is adding to the prospect of another key low being left. However, the bulls have now only “filled” the gap at 109.15. For a recovery to be on track, this gap needs to be “closed” today with another positive candle. Momentum indicators still look corrective as the MACD and Stochastic slide away. Admittedly, this is within a fairly neutral, oscillating medium term configuration, whilst the MACD decline is also slowing. It suggests the longer the support at 108.70 builds there is a likelihood that this is a chance to buy once more. The hourly RSI moving decisively into the 60s would help improve the outlook. Above 109.20 resistance sits at 109.65/109.70.
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