USD / JPY
After seeing the rebound come to an end in the past two sessions, yesterday’s small-body, tight-range candle did little to pull the market out of growing consolidation. There are some risky events on the immediate horizon today (OPEC + and Eurogroup meeting) but this could also be the case for besieged traders limping towards the Easter break. This occurs when the momentum indicators have settled near their respective neutral points, and the moving averages have converged to flatten (there are only 35 pips separating the four moving averages that we cover). The hourly chart also reflects this consolidation, the market hovering around 108.70 in recent days, while the hourly RSI has stabilized between 35/65. The rally weakened around 109.30, which is an old offer of overhead costs, but support forming around 108.70 (the previous break) suggests a lack of conviction in both cases for the moment. We are then neutral on Dollar / Yen. Above 109.30, the situation would improve again, but there is considerable air resistance around 109.60 / 109.70 to restrict the bulls. A move below 108.15 (an old pivot) would start to leave a negative bias and increase the downward pressure again.