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"The market likes the idea of a snap election and a delay in the sales-tax hike, and the yen is being sold against the dollar."
- Union Bank NA (based on Bloomberg)
Pair's Outlook
After three days of unsuccessful attempts, the USD/JPY managed to advance above the important resistance line, represented by weekly R1 at 115.87. The pair is now trading well above the 116 major level, meaning that bulls have a confident intention to go further. It is likely that the pair will reach the monthly and weekly R2 around 117.25. These levels, however, will probably calm down the bullish pressure for some period of time.
Traders' Sentiment
Market sentiment changed only marginally in course of last 24 hours. Right now 53% of all traders are holding short positions on the US dollar, down from 54% yesterday. Pending orders remain stable as well in 100-pip range, with 56% of them being bullish.
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