© Dukascopy Bank SA
- Sumitomo Mitsui Trust Bank (based on Reuters)
Pair's Outlook
The market continues to respect the falling trend-line that previously formed the upper boundary of the symmetrical triangle (May 22 - Sep 1) but now acts as the support, even though it was breached on Sep 2. Consequently, the pair is moving away from 96.56/49 to 97.64, where it will encounter yet another bearish line, which in turn is reinforced by the 200-day SMA, a fact that makes a surge an unlikely event in the near future.
Traders' Sentiment
The overwhelming 75% of the market participants believe USD/JPY has bottomed out and is on the verge of starting a recovery, since they have opened long positions. Moreover, the bullish pressure will be provided by the pending orders, 73% of which are set to purchase the U.S. Dollar.
© Dukascopy Bank SA