As the Yen bulls remain indecisive a move to the down side will most likely be capped by the 108.88 level, a previous 2005 high and a major support for the dollar longs. A move to the upside will most likely be capped by the 109.71. Indicators signal trend reversal, with ADX (DMI) dropping to 26.71. Stochastic is above the overbought line on the daily chart at 89.69 with Stochastic on the 4-hour chart neutral at 41.99, thus providing yen bulls with a chance to mount a counterattack. RSI is treading below the overbought line at 62.32 on the daily chart, with dealer (4HR) chart RSI also neutral at 60.43. MACD has made a bullish crossover above the zero line on the daily chart, while the MACD on the 4-hour chart has made a bearish crossover above the zero line.

 
Key Levels

Level
Resistance
Details
110.71
Major
Sep 3 daily high
110.21
Intermediate
Oct 13 daily spike high
109.83
Minor
Sep 30 daily spike low
Level
Support
Details
108.85
Minor
June 1 daily spike high
107.89
Intermediate
61.8 Fib of the 111.69-101.74 JPY rally
107.27
Major
June 10 daily low