© Dukascopy Bank SA
"The big policy story about divergence between the U.S. and other economies is still coming through. It's really just a consolidation phase in the dollar and we should see it continue to strengthen."
- Commonwealth Bank of Australia (based on Bloomberg)
Pair's Outlook
A recent test of resistance at 122.00 triggered a powerful bearish reaction, but now there is a good chance the bulls will soon regain control of the pair. At the moment USD/JPY is trading near a cluster of supports at 119.00, consisting of the monthly pivot point and 55- and 100-day SMAs. This should be enough to negate the downward pressure and send the exchange rate back to the 2014 high, violation of which will mean an up-move to the 2007 high at 124.00.
Traders' Sentiment
As the US Dollar becomes cheaper, the sentiment towards USD/JPY improves. Right now 70% of open positions are long and only 30% are short. As for the pending orders, 64% are to purchase and 36% are to sell the Greenback against the Yen.
© Dukascopy Bank SA