Is the Dollar rally versus the Yen over?

Recapping the Majors

EUR/USD– The Euro once again stayed relatively quiet today as it hovered around the 3450 level for the 5th straight day now. The pair seems to have found support at the 3400 mark but hasn’t made any significant rallies yet.

Result: The Euro once again stayed quiet as it hovered around the 3450 level for the 5th straight day.

GBP/USD The Sterling rose slightly against the Dollar as it moved from 9750 back up to 9800. The pair broke through support yesterday at its 50 EMA on the daily chart but was unable to sustain the downward momentum and proceeded to rally today.

Result: The Sterling rose slightly against the Dollar after having fallen through support yesterday. The pair is now facing resistance at the 9800 mark.

USD/CHFFor the 2nd straight day, the Swissy barely made a sound as it simply stayed put at the 2250 mark. The pair had fallen from resistance at 2300 three days ago but has since held still.

Result: The Dollar once again stayed still against the Swissy, pausing at the 2250 level.

USD/JPY The Dollar edged higher once again as it neared the 122.00 mark today. The pair has been showing exhaustion of its longterm uptrend and today was no different. Although the pair edged higher, it ended up settling right back at 121.60, where the pair has been gravitating to for the past few days now.

Result: The Dollar rallied slightly early on towards the 122.00 mark but ended up right back at 121.60 by the end of the day, once again showing exhaustion of the longterm uptrend.

Chart Analysis: What’s going to happen next?

EUR/USD

Well the Euro moved up slightly but seemed to be stuck at the 50 EMA on the daily chart at around 3450. Daily stochastics are still trending up and I strongly believe that the Euro will still make its move to 3500. However 4hr stochastics looks like it is about to cross down which could mean that we could see another delay. Overall I am still bullish on the Euro and expect to see it hit 3500 some time soon.

GBP/USD

Well the Cable did end up retracing back to 9800 like I said it would yesterday and I think we’ll see it hang around that level for a little while longer. Daily stochastics are still trending down nicely so I think that we’ll see the Cable continue to fall back down to 9700 in the next day or so.

USD/CHF

My Swissy analysis is pretty much the same as yesterday since the pair didn’t even move today. Both 4hr and daily stochastics are still trending down and I still expect the pair to make its way down to 2200 in the near future.

USD/JPY

I’m sure you already know what I’m about to say about the USD/JPY. It’s going to drop! I’ve been saying that for a long time now and that is still my belief. The pair did edge higher as it almost hit 122.00 but I really think we’re seeing some exhaustion after this long upward rally we’ve seen for the past few months. Daily stochastics are now trending down and are in overbought territory which leads me to believe that we will see this pair drop to 121.00 very soon.