© Dukascopy Bank
"Japan's current-account balance will turn out to be a deficit in January. Considering the demand-supply balance, a weaker yen is a natural consequence"
- Credit Suisse (based on Bloomberg)
USD/JPY has just breached a resistance at 76.90 and now is eyeing 77.17/32 (55 and 100 day ma). In case bullish impetus persists, we may see advancement toward 78.12/30 afterwards. Dips should not extend below 76.30 and 76.00.
Traders' sentiment
Traders' sentiment remains perfectly neutral on USD/JPY currency pair, since for every long position there is exactly one short position.
Long position opened
Largest brokers set a new long position target as a break of 76.98 is an encouraging bullish sign en route to 77.19. If the uptrend remains, the third target for intraday trading will be 77.43.
Short position opened
Major dealers are planning to partially close their short positions if the pair touches upon the first support level at 76.53. However, if the bearish impetus proves to be strong enough, some of the positions could be squared off at S2 of 76.29 and at S3 of 76.08.
© Dukascopy Bank