Richard Perry
Independent Analyst
USD/JPY
It has come out of almost nowhere, but finally a decisive move higher has broken the tedium that is Dollar/Yen. Suddenly, with the risk rally taking another leg forward, the market has taken a view, and it does not look great for the safe haven yen. After weeks of doing nothing, a huge bull candle formed yesterday and Dollar/Yen has broken higher. A move that has smashed through resistance at 108.10 completes effectively what is a 210 pip base pattern breakout and implies a move towards 110.00 over the coming weeks. The breakout at 108.10 now becomes an area of support to buy into an intraday pullback. Ideally this would be a move to wait for confirmation, (especially given the false downside break of last Friday). So perhaps a confirmation session, building support above 108.10 would help to add confidence for the breakout. An early consolidation today is not giving back the breakout yet and is encouraging. Given The improvement in momentum now, support forming above 108.10 would be a positive signal that the market is accepting the breakout. The next resistance is the early April high of 109.35.
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