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"It [U.S. nonfarm payrolls] would have to come in well under 100,000 for it to have any significant downside effect on dollar/yen."
- Saxo Capital Markets (based on CNBC)
Pair's Outlook
USD/JPY effortlessly pierced through a cluster of resistances at 102.89/78 yesterday. Now, being that the 55 and 100-day SMAs have already been breached, the price is set to challenge the next obstacle at 103.34/18, consisting of the weekly R2 and the 23.6% Fibo. Afterwards, if the bullish momentum is preserved, the 2013 highs at 104 will come under attack.
Traders' Sentiment
The sentiment of the market towards USD/JPY proves to be exceptionally stable. The share of the long positions remains the same as yesterday—72%, meaning most of the traders expect the U.S. Dollar to outperform the Yen. Meanwhile, the number of buy orders is growing both 50 and 100 pips from the spot price.
© Dukascopy Bank SA