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"Long dollar-yen is probably a clear winner because of the U.S. situation and potential rise in interest rate."
- Armstrong Investment Managers (based on Bloomberg)
Pair's Outlook
The current situation in USD/JPY does not seem to warrant a long position. The monthly pivot point together with the 200-day SMA repeatedly prevented emergence of a sustainable rally, meaning the price is likely to return back into the 119-118.50 region during the next few weeks. The immediate support level is at 120.30/26. In the meantime, in case the US Dollar manages to jump over the monthly PP and 200-day SMA, the currency will have a good chance to re-test the recently broken trend-line at 122.50.
Traders' Sentiment
The distribution between the bulls and bears is about the same as right before the weekend—64% of positions are long. As for the orders, 53% of them are set to sell the Dollar against the Yen.
© Dukascopy Bank SA