© Dukascopy Bank SA
- IG (based on Bloomberg)
Pair's Outlook
Following a brief correction USD/JPY jumped 140 pips in one day, effortlessly piercing through the monthly R3 in the process. The pair is now trying to climb over the resistance at 109, represented by the weekly R2 and 2008 Sep high—the last bastion of the bears before the main 2008 high at 110.70. Judging by the technical indicators on the weekly and monthly time-frames, this defence is not going to last long.
Traders' Sentiment
The bearish sentiment with respect to USD/JPY is now as strong as five days ago, when 71% of open positions were short. Concerning the orders set 100 pips from the spot, 70 are to buy and 30% are to sell the Buck.
© Dukascopy Bank SA