USD/JPY is set to advance

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"I'd imagine the dollar could rise a few yen more but if it rises to 100 yen, that will cause more friction (with Japan's major trading partners)."
- a trader at a Japanese trading house (based on Reuters)


Pair's Outlook

USD/JPY proceeds with the positive tendency it initiated at the very end of Friday, starting this week on a positive note with an upside gap. Daily and weekly technical indicators are giving "buy" signals and there is still room for growth up until the interim resistance at 95.33/94.73, which is followed by 95.71. In the meantime short-term losses should be limited by supports at 93.52/48 and 92.86/50.

Traders' Sentiment
Bulls completely dominate USD/JPY, making it overbought to a significant degree by constituting 70% of the market, whereas bears are in a distinct minority, taking up merely 30% of the market. The distribution between the buy and sell orders is rather similar—70% to 30% accordingly.
© Dukascopy Bank SA

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