© Dukascopy Bank SA
- Dai-Chi Life Research Institute (based on CNBC)
Pair's Outlook
The pair failed to breach the 122 level yesterday and since then it has started to decline. At the time of writing the pair has dipped below the psychological level at 120 and seems to be targeting the weekly S1 at 119.05. Additionally, the up-trend's support line has been breached as well; however, we do not expect this to be a beginning of a new trend. To our mind this is just a correction and most likely the pair will continue to hover around the 120 level.
Traders' Sentiment
The sentiment of the SWFX market participants remains neutral with respect to USD/JPY, as of today 51% of the market participants are short. At the same time the gap between the buy (56%) and sell (44%) orders has narrowed.
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