USD/JPY erodes up-trend

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"The formation on the candlestick chart looks bearish for the dollar. Its intraday highs have been grinding lower in the past week and have failed to reach 97 yen, showing the recent gains are stalling."
- Gaitame.com Research Institute Ltd. (based on Bloomberg)


Pair's Outlook

Profit-taking on the pair's Nov 2012—Mar 2013 rise drags on, endangering the bullish trend-line that preserves the positive outlook. The price was expected to target 97.80 in the short run and 99.80 in a longer time perspective, but it appears that the current correction will take more time and effort from the bulls, who should wake up before USD/JPY falls below 93.17/92.58.

Traders' Sentiment
Three out of four (74%) market participants have preferred to go long on USD/JPY, believing that the upside potential of the pair has not yet been fully realised. As for the orders, 68% of them are to open a long position, revealing that many of the traders are planning to buy on dips.
© Dukascopy Bank SA

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