USD/JPY: The safe haven attraction of the yen remains a key feature of market moves [Video]
|USD/JPY
The bulls had had the prospect of recovery once more swept away from under them. Another decisive negative candle has seen the market close meaningfully below the support at 106.50 in a move which effectively now opens the massively important long term support band 104.45/105.00. Even this morning, where there is a degree of dollar consolidation across majors, we see the yen strength continuing. The safe haven attraction of the yen remains a key feature of market moves. The negative momentum on Dollar/Yen is ever strengthening now, with RSI under 30, whilst MACD and Stochastics fall ever deeper into bearish configuration. Near term rallies are a chance to sell. The hourly chart shows resistance 106.50/107.00 and any technical unwind into this band will struggle now. A retest of the August lows 105.00 and 104.45 is on. The first real lower high of any note is at 107.75 and needs to be broken for any realistic prospect of a recovery holding.
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