The yen's advance may be limited by speculation Japanese workers paid summer bonuses this month will invest more abroad. Fund managers in Tokyo will launch more than 1.4 trillion yen ($11.5 billion) of foreign-currency trusts in July, according to data compiled by Bloomberg.
Japanese companies' bonuses rose 2.52 percent this year, increasing for a fifth year, the Nikkei newspaper reported yesterday, citing its own survey of 790 corporations nationwide. They paid an average bonus of a record 837,036 yen ($6,869), 1.08 percentage points higher than last year, the Nikkei report said.

The selling point is at 121.85; triggered by double top and fail to reach higher than the previous peak of 122.11. The market swings downwards and changes the direction of the minor trend.

-Previous support is the first target take profit at 121.57 and the second target will be last
support at 121.31
-Fibonacci retracement 38.2% is the stop loss at 122.30


To strengthen our analysis; we use many other indicators, starting with MACD (Moving Averages convergence divergence); we notice the crossing of the two moving averages below the zero line pointing downwards. In order to find the power of the market, we use RSI (Relative Strength Index).With RSI, we can determine a breaking of the RSI trend line.

We should always look at the primary trend line; and in this example it breaks and changes its direction. Minor direction is clear downtrend. For the momentum oscillator we have to concentrate at the zero line and in this example breaks the zero line downwards. Stochastic is giving us a bearish signal. Most of the indicators show us the weakness of the US dollar against the Japanese Yen and the continuation of a downtrend.

* The following analysis is for information only; Finotec is not responsible for any
decisions or misinterpretations based on the given text.

By Finotec’s professional analyst,
Tony B.

dealingdesk@finotec.com