USD/JPY gravitates towards 106.00

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"Dollar/yen could test the 108 handle if the Fed's comments this week are supportive towards a rate hike and if the BOJ eases. On the other hand, the pair could drop below 105 if the BOJ stands pat as easing expectations are well entrenched." 
- FPG Securities (based on Reuters) 

Pair's Outlook 
Although the USD/JPY pair managed to inch higher on Friday, it was unable to climb over the immediate resistance area, where supply remains strong even today. The Buck is in a tight spot between the 106.00 major level and the cluster at 106.50, awaiting for a catalyst to trigger movement. According to technical indicators, the pair is to edge higher again today, but a breach of the resistance area at 106.50 is unlikely. The Greenback might be on the edge of reversing its recently acquired short-term bullish trend, and technical studies support this outlook. The upcoming BoJ meeting on Friday are expected to shine some light on the pair's further performance. 

Traders' Sentiment 
Bulls are now in the majority, taking up 51% of the market (previously 49%). Meanwhile, the share of sell orders surged from 52 to 73%.
© Dukascopy Bank SA

Actual Topics

Subscribe to "Fundamental Analysis" feed

Subscribe
To learn more about Dukascopy Bank CFD / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
For further information regarding potential cooperation,
please call us or make callback request.
To learn more about Dukascopy Bank Binary Options / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
To learn more about Dukascopy Bank CFD / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
To learn more about Crypto Trading / CFD / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
To learn more about Business Introducer and other trading related information,
please call us or make callback request.
For further information regarding potential cooperation,
please call us or make callback request.