Yesterday’s ranging signals that Dollar/Yen will drop a little further before making the final rise to around 116.00.But the action today should be range-bound again.There is scope for an initial drift into the 115.20/40 region before a secondary drop to 114.00 is made.The most I expect on that drop is 113.50.Dollar/Yen should then rise to 116.00 and complete its corrective sequence from 108.95.
It was a narrower range on the day as Euro/Yen drifted into a new high of 145.25 for the current rise, warning that a top is developing.Subsequent action is still unclear so I cannot discount another rise today, but any such rise will be minimal.A drop through 144.75 will be a preliminary sign of weakness but it will take a break of 144.40 to confirm that a new decline is unfolding for a challenge of 142.00/75.Only a strong rise from current levels, and one that breaks the recent high of 145.70, will confirm that Euro/Yen is on an upward path towards 147.00.
Aussie/Yen failed to push through 84.50 yesterday and will now rise back to 85.55.I still favour a decline starting and when 84.40 gives way to test 83.45 and 82.65.But there is now a chance of a rise through 85.80.
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