USD/JPY tests weekly S1

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"The Japanese have been big sellers of foreigns assets, as long as that keeps up, that's going to keep a lid on dollar- yen. It may be many months before they consider changing their policy." 
- Westpac Banking Corp. (based on MarketWatch)


Pair's Outlook

The bullish trend-line at 97.81 was overcome easily yesterday, being that the price slipped from it sharply towards the Bollinger band and the weekly S1 at 96.98. Such a long and persistent downside move raises doubts regarding the pair's ability to breach a 100 benchmark soon. On the other hand, further depreciation will be rather difficult, as many support levels are located just below the spot price. The closest is the monthly PP at 96.59 and slightly lower the 55-day SMA merges with the weekly S2 at 96.24.

Traders' Sentiment

Weakness of the Japanese Yen remains, since only 26% of opened positions are short. Waiting orders segment is bullish towards USD/JPY, as 68% of orders are waiting to sell the Asian currency.
© Dukascopy Bank SA

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