© Dukascopy Bank
"We think dollar/yen will struggle to get through the 80 yen area, which has capped recent moves higher"
- Societe Generale (based on CNBC)
Industry outlook
USD/JPY has cleared 78.06 (200 day ma) and 78.29 as well, as it is targeting 79.17 (55 week ma) at the moment. Beyond the latter level we might see a rally up to 79.55 or even 80.00/25, should the current bullish momentum prove to be strong enough.
Traders' sentiment
Despite the US Dollar being by far more popular than the Japanese Yen in the SWFX marketplace, the sentiment is neutral on USD/JPY currency itself.
Long position opened
The break of the short-term resistance line 78.86 would pave the way for the pair to rise up to 79.29. The clearance of the second daily resistance level would establish a new target for traders at 80.04.
Short position opened
In case of dips, another rally may start after rebounding from the initial support level at 77.68. However, assuming that the bearish momentum does not weaken, investors will pay attention to the lower support levels at 76.93 and 76.50.
© Dukascopy Bank