Dollar/Yen had a relatively bullish week following on from the previous week’s low at the weekly-based upward trending mvg avg.Further strong rises this week will swing the odds in favour of a new rally segment to take Dollar/Yen through 117.90.But currently Dollar/Yen is against the 62% retracement level of the 117.90/113.95 decline.With s/t momentum in a strongly overbought position the current rally should peak just a little higher today.A drop back to 115.70 should follow.A strong rise off 115.70 will swing the odds in favour of a new rally.Only a drop through 115.10 will open the way for a new decline.
At first glance Euro/Yen’s firm rise on Friday suggests that it will once again attempt to extend its broader rally into new highs.However, the s/t structure of the move is not as convincing.There is scope for higher levels today after an initial drop to 147.70 this morning.However, whether the 148.60 high will be breached is uncertain.If it is breached, then the rally will extend to 149.00.A failure to hold above Friday’s 148.35 high will signal a return to 147.70 initially and then to the 146.60/147.00 zone.
Aussie/Yen managed to rise through 88.90 on Friday but this rise is the final stage of the segment from June’s 83.45 low.After a test of 89.40 expect a drop back to 87.20.
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