USD/JPY stranded in channel

Source: Dukascopy Bank SA

Positions Today Yesterday % Change
Longs 31% 30% 3.23%
Shorts 69% 70% -1.45%
Indicator 4H 1D 1W
MACD (12; 26; 9) Sell Buy Buy
RSI (14) Neutral Neutral Neutral
Stochastic (5; 3; 3) Sell Neutral Sell
Alligator (13; 8; 5) Sell Buy Buy
SAR (0.02; 0.2) Sell Sell Buy
Aggregate

On Monday, the US Dollar remained in a relatively constant range, even despite the massive leap mid-session. This situation changed this morning when the American currency fell down to the 112.10 mark. This momentum downwards could continue in the upcoming hours and therefore move the rate closer to the weekly S1 at 111.70. The given support, however, is very strong, reinforced by the 55-, 100– and 200-day SMAs apparent on the daily chart. Only substantial bearish sentiment may dash through this area. Thus, it is more likely that a reversal to the upside could occur there. In the meantime, another scenario may set the pair for a reversal near 112.00, thus establishing the upper channel boundary in the 112.20/50 territory as a possible trading range until Wednesday morning.

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