© Dukascopy Bank SA
- Barclays (based on Reuters)
Pair's Outlook
USD/JPY fetched 103.40 yesterday, but eventually slid back under 102.70, which is represented by the weekly PP and 55-day SMA. The current support is at 102.16/03 (monthly PP and 20-day SMA), but the pair is unlikely to stay in this narrow corridor for long, considering the amount of high-impact events scheduled for today. We are still waiting for the price to break one of the two key levels, which is expected to determine further direction of the pair. The key resistance is at 103.50 and the key support is at 100 yen.
Traders' Sentiment
Judging by positioning in the SWFX market (69% are long), a majority of traders is waiting for a rally. However, this also means that the US Dollar is already overbought, and there is little room for new buyers to enter the market and push the price higher.
© Dukascopy Bank SA