USD / JPY
The rebound of the dollar in recent sessions has just faded slightly this morning. We recently discussed whether the recovery on the dollar / yen would be a higher recovery or turn into consolidation. The rally which takes place around 109.30 (which is also around an aerial supply zone) leaves the movement at a key stage today. The daily dynamic indicators have been left in limbo because they quickly slow down the recovery movements around their neutral points. The importance of what is becoming more and more a pivot towards 108.70 is also increasing. After having previously been a resistance, it is now favorable this morning and can be considered as a gauge for recovery. Failure under 108.70 consolidates, while a return below 108.15 gives the market a negative bias once again. The hourly RSI must be kept above 40 and the hourly MACD ideally above neutral to maintain any semblance of positive bias. The movement must now hold 108.70 and then shoot above resistance 109.30 to continue the recovery. A key crossroads for the short term outlook on the dollar / yen.