© Dukascopy Bank SA
"With the effect of the sales tax hike, I don't see real wages rising in the financial year through April."
- Mizuho Securities Co. (based on Bloomberg)
Pair's Outlook
USD/JPY struggled to remain above 118 level yesterday; however, with a help of the weekly PP and 100/200-period SMAs the US Dollar is still trading above the trend-line. Now the pair is climbing towards another major level at 119 and we think that the pair might be ready to surpass it, even though yesterday it failed to do so. The bullish daily PP will be a helpful hand to leave the 119 level behind.
Traders' Sentiment
More traders than yesterday consider the dip in USD/JPY to be undervalued; however, the sentiment still remains neutral. Accordingly, the share of long positions grew from 51% up to 53%. The distribution between the buy and sell orders is more stable than yesterday—58% and 42% respectively.
© Dukascopy Bank SA