© Dukascopy Bank SA
- Credit Agricole (based on CNBC)
Pair's Outlook
While the activity in most of the major currency pairs is currently sluggish, USD/JPY is quickly closing the gap between the spot and the resistance at 105.04/104.92. However, this level may delay further advancement of the price by throwing it back to the accelerated up-trend support, specifically down to 103.74/72. A deeper retracement is unlikely to stop until 100.86/62.
Traders' Sentiment
The traders are getting less and less convinced that the U.S. Dollar retains capacity to outperform the Japanese Yen—the gap between the bulls and bears continues to narrow and at the moment is 10%, meaning the sentiment towards USD/JPY is neutral. Similarly, the share of buy orders, while still substantial, is also on the decline.
© Dukascopy Bank SA