© Dukascopy Bank
"When you start to see Aussie/yen, and dollar/yen and euro/yen all slide together then you have the green light for action"
- BNP Paribas (based on CNBC)
Industry outlook
USD/JPY is currently sliding down to a support line located at 76.54. Nevertheless, an advancement toward 77.69 first and 78.56 (200 day ma) and even higher levels (79.56 and 80.00) afterwards is not ruled out.
Traders' sentiment
Presently there is almost no difference between the amount of long and short positions on USD/JPY, being 51% and 49% of the market, respectively. As a result, traders' sentiment is neutral on the pair.
Long position opened
The break of the short-term resistance line 76.97 would pave the way for the pair to rise up to 77.18. The clearance of the second daily resistance level would establish a new target for traders at 77.31.
Short position opened
In case of dips, another rally may start after rebounding from the initial support level at 76.63. However, assuming that the bearish momentum does not weaken, investors will pay attention to the lower support levels at 76.50 and 76.29.
© Dukascopy Bank