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"From a technical perspective, a close above the top of a cloud on the charts at ¥79.01 would mark a very significant event for dollar/yen"
- Royal Bank of Scotland (based on Marketwatch)Pair's Outlook
After the rapid USD/JPY appreciation in last week, today currency pair showed some correction. Yesterday's peak and the major resistance level was the upper Bollinger band line around 79.05 level, where also Monthly R1 and Weekly R2 reside. As price retreated, it is very possible to see some negative impetus, at least till 78.69 level, where very important downtrend line is. If the price settles above this line, it is very likely that USD/JPY will continue to gain value further in the near future.
Traders' Sentiment
Gap between long and short positions in SWFX market stays huge, as 74.7% traders have opened a long position and only 25.3% keep a short position, willing to see further the Yen depreciation. Situation in pending orders market is very similar, as 83.1% orders are for a long position and 16.9% for a short position.
© Dukascopy Bank SA