© Dukascopy Bank SA
"We see higher levels for the dollar-yen. There's no reason for [the yen] to gain on any sustainable basis, but in the near term, we can see a pullback."
- CIBC (based on CNBC)
Pair's Outlook
Despite the fundamentals of Japan turning out to be weaker than expected, USD/JPY was sold off from 117—the new 2014 peak. However, the bearish correction may soon come to an end, as the US Dollar is headed towards 114.80, where the weekly S1 joins forces with the monthly R1 and 2007 Dec high. But if the downward pressure persists, there is yet another formidable support at 113.20, formed by the 23.6% Fibo, 20-day SMA and weekly S2.
Traders' Sentiment
Just like in EUR/USD and GBP/USD the shares of the bulls and bears are nearly equal—48 and 52%, respectively. At the same time, the distribution between the pending orders reveals the buying and selling pressures to be equally strong.
© Dukascopy Bank SA