© Dukascopy Bank SA
"There are going to be quite a few things for the market to digest and we could see a fall in stocks and strengthening in the yen."
- TD Securities (based on CNBC)
Pair's Outlook
For the time being the resistance at 117 is standing its ground, regardless of the strong upward momentum of USD/JPY observed since mid-October. Nevertheless, as suggested by the daily and weekly studies, the bulls should eventually succeed. The 2007 Oct high at 118 will then become the new objective, followed by the 2007 high at 124, though the US Dollar will have to stay above 114.70 to prevent extension of a possible correction.
Traders' Sentiment
At the moment the USD/JPY market is in perfect balance, as the shares of bullish and bearish traders are equal. As for the pending orders, 55% are to acquire and 45% are to sell the Buck against the Japanese Yen.
© Dukascopy Bank SA