USD/JPY: intraday rallies should be seen as a chance to sell [Video]
|USD/JPY
A rather mixed look to the payrolls report on Friday has done little to change the outlook on USD/JPY. A run of negative candlesticks in recent sessions may have stalled slightly, but a breakdown below 106.95 is confirming with another closing breach of support. This completes a top that implies a further -150 pips of downside towards the 105.50 area now. Given the significant deterioration across momentum indicators, intraday rallies should be seen as a chance to sell. The RSI holding under 50, along with the MACD lines accelerating lower and negative configuration on Stochastics reflect this. A close under 106.75 (the neckline of the old base pattern) would begin to add traction to the deterioration. Subsequent support comes in at 105.70. The hourly chart shows resistance in the band 106.95/107.30 as an intraday sell zone. There is further resistance 107.40/107.90.
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