A move to the downside by the yen bulls will most likely be capped by 104.00 figure thus establishing a triple bottom reversal. Indicators signal trend reversal, with ADX (DMI) dropping to 21.70. Stochastic is sloping downward on the daily chart at 27.30, supporting a view that a trend might be weakening. The Stochastic on the 4-hour chart is treading above the overbought line at 83.19, thus providing dollar bulls with a chance to mount a counterattack. RSI is neutral at 52.95 on the daily chart, with dealer (4HR) chart RSI is neutral at 60.20. MACD has made a bearish crossover above the zero line on the daily chart, with MACD on the 4-hour chart is pointing upwards toward the zero line. If the yen bulls retreat, a move to the upside will most likely see the USD/JPY rocket through 109.00 and target the 110.00 figure, with a breakout targeting the 115.00.
|108.27||Intermediate ||May 26 daily spike high|
|107.74||Minor||23.6 Fib of the 104.17-108.85 USD rally|
|107.06||Minor||38.2 Fib of the 104.17-108.85 USD rally|
|106.51||Intermediate||50.0 Fib of the 104.17-108.85 USD rally|
|105.96||Major||61.8 Fib of the 104.17-108.85 USD rally|