© Dukascopy Bank SA
- a trader at a Japanese bank (based on CNBC)
Pair's Outlook
While the 55-day SMA and 23.6% Fibo were unable to underpin the pair, a joint effort of the monthly S1 and 50% retracement kept the US Dollar from losing even more ground. Now USD/JPY finds itself trapped in a range between 106.50 and 105.50, and a breach of any of there levels should imply continuation of the move in the same direction. However, the upper boundary is considered to be a more likely candidate for a breach—the risks are skewed to the upside.
Traders' Sentiment
The sentiment of the SWFX market towards USD/JPY remains neutral, as the gap between the long and short positions is only eight percentage points. Meanwhile, 46% of pending orders are to buy and 54% are to sell the Buck.
© Dukascopy Bank SA