© Dukascopy Bank SA
"Markets took Chinese data to be slightly stronger than expected. That's underpinning dollar-yen which is seen to have a firm correlation with risk sentiment."
- Bank of America Merrill Lynch (based on Bloomberg)
Pair's Outlook
Although the resistance at 118 was seen as capable of preventing a rally, USD/JPY is currently eroding the resistance created by the 55-day SMA, 23.6% Fibo and weekly PP. Should this supply area be violated, the monthly pivot point at 119 will be come the next target, followed by the late December highs at 121. Conversely, if the bears withstand the buying pressure, the US Dollar is to return to 116, namely in the vicinity of the monthly S1 and 38.2% Fibo.
Traders' Sentiment
The bulls continue to increase their share. At the moment they take up 62% of the market (61% yesterday and 57% five days ago). The share of buy orders went up as well, but from 59 to 63% within the last 24 hours.
© Dukascopy Bank SA