USD/JPY in limbo amid bank holidays

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"We note that the distance between the upper and lower Bollinger Bands is the narrowest it has been for almost two decades. It suggests that even if the triangle pattern is not longer valid, the dollar is coiling against the yen. It warns that a large move may be on the horizon." 
- BBH (based on FXStreet) 


Pair's Outlook 
The US currency behaved in accordance with expectations on Friday. The USD/JPY managed to rebound, but with the upside volatility was slowed down by the 20-day SMA, causing the pair to stabilise at 120.25. The Greenback opened just above 120.14, where the weekly pivot point coincides with the 20-day SMA, forming a rather strong support. Consequently, a decline is unlikely to occur, and with the absence of fundamental market movers, the Buck should edge higher against the Yen, but fail to reach the immediate resistance. 

Traders' Sentiment 
Bulls remain strong, as 71% of traders hold long positions today (previously 70%). The number of buy commands, on the other hand, was not so lucky and suffered a decline from 61 to 59%.
© Dukascopy Bank SA

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