Note: This section contains information in English only."It's extremely likely that the yen will break 100 this year, or even this month."
– - Eisuke Sakakibara, former Japanese vice finance minister (based on Bloomberg)
Pair's Outlook
[ANNOUNCE]USD/JPY is currently in the process of forming a new bearish wave. The pair is presently trading right in the middle of the descending channel that was initiated at the turn of 2015 and 2016.[/ANNOUNCE] The pattern implies an extension of the current sell-off towards 98-97 yen. However, there is a massive demand area circa the round level of 100 yen that is unlikely to give in easily despite the bearish indicators. Apart from being a psychological level, this is the 50% Fibonacci retracement of the four-year rally that began in 2012 and the 2014 low. If this support is breached, our longer-term outlook will be changed to bearish.
Traders' Sentiment
Bulls continue to hold the majority, namely 58% of the market, despite a strong bearish rejection from 107. This makes USD/JPY vulnerable to an even deeper decline.
Tue, 02 Aug 2016 09:36:09 GMT
Source: Dukascopy Bank SA
– - Eisuke Sakakibara, former Japanese vice finance minister (based on Bloomberg)
Pair's Outlook
[ANNOUNCE]USD/JPY is currently in the process of forming a new bearish wave. The pair is presently trading right in the middle of the descending channel that was initiated at the turn of 2015 and 2016.[/ANNOUNCE] The pattern implies an extension of the current sell-off towards 98-97 yen. However, there is a massive demand area circa the round level of 100 yen that is unlikely to give in easily despite the bearish indicators. Apart from being a psychological level, this is the 50% Fibonacci retracement of the four-year rally that began in 2012 and the 2014 low. If this support is breached, our longer-term outlook will be changed to bearish.
Traders' Sentiment
Bulls continue to hold the majority, namely 58% of the market, despite a strong bearish rejection from 107. This makes USD/JPY vulnerable to an even deeper decline.