© Dukascopy Bank SA
"We have a dollar-yen forecast of 132 by the end of this year."
- Royal Bank of Canada (based on Bloomberg)
Pair's Outlook
USD/JPY is currently attempting to recover the recently lost ground, but the upside may well be limited by the just breached rising trend-line at 119. The resistance here is also implied by the monthly PP, weekly S1 and 20-day SMA. Accordingly, the risks are skewed to the downside. However, if the price manages to close above the supply area, despite the strong resistance, there is likely to be a re-test of last year's maximum at 122.
Traders' Sentiment
The sentiment with respect to the US Dollar remains weakly bullish—56% of open positions are long. As for the pending orders, the percentage of the ones to purchase the currency 100 pips from the spot slipped from 70 to 64%.
© Dukascopy Bank SA