(94,71) The USD/YEN confirmed the expected drop below 95 however after a rather neutral closing last night. The drop could confirm a S _ H _ S formation with the neck line found at 95,30, now resistance. The potential could be a test of the 200 days line, now found at 89,33!! A daily closing below 95,00 will start supporting this scenery!! The indicators of the daily chart are still well negative entering now the oversold area. The indicators of the s/t charts are also negative and oversold with however bullish divergences confirming a negative tone!!
On top of the analysis we have to add that:
– the dollar just retraced 38,2% of the previous move up 79,07 – 103,74.
– the 50% retracement is only at 91,45
We stay on the sideline but still expect lower levels
Read the full report: USDJPY 06.13
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