© Dukascopy Bank
"A move above 80-82 yen is probably in sight and then we would look at reducing our short yen positions slightly"
- Barings Investment Management (based on CNBC)
Industry outlook
The initial resistance for the pair is situated at 79.55, followed by 79.89 and 80.00. In the long-term the pair is targeting 86.85, though it will have to overcome 82.80 and 85.53 first. Dips should be halted by supports at 78.41, 78.29 and 77.77.
Traders' sentiment
Since the US Dollar is the most popular currency in SWFX marketplace, USD/JPY currency is overbought to a large extent. Long trades constitute 82% of the market, whereas short trades form merely 18% of it.
Long position opened
Investors should pay close attention to the identified resistance levels for the pair at 79.82, 80.12 and 80.64.
Short position opened
Bearish traders will pay attention to the key support levels to close their deals. The forecast targets are 79.00, 78.48 and 78.18.
© Dukascopy Bank