© Dukascopy Bank SA
"As long as the possibility of a BOJ easing remains pervasive, it's difficult to assume a considerably higher yen."
- FPG Securities (based on MarketWatch)
Pair's Outlook
Not only did the currency pair manage to close above 120.50, but it also pierced the 200-day SMA last week, meaning we should expect the US Dollar to strengthen even more in the nearest future. The initial resistance is the monthly R1, followed by the 100-day SMA at 122 yen. Additional obstacles for the rally will be the monthly R2 at 122.66 and the rising resistance line at 123, which has been broken to the downside back in August. Meanwhile, we should be wary of the fact that the weekly studies stay bearish.
Traders' Sentiment
There has been a major shift in the attitude of traders towards USD/JPY. The portion of bulls dropped to 51%, while for the past month they had been taking up 70% or more of the market.
© Dukascopy Bank SA