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- JPMorgan (based on Bloomberg)
Pair's Outlook
The current setup is bullish for USD/JPY, as the currency pair has broken out of the descending channel that had been guiding the price lower since the end of 2015. However, we would like to wait for a confirmation of support at 103 yen before claiming that Dollar is going to appreciate, as fundamentals have not been supportive of USD/JPY rally lately. Once 103 is established as a solid demand area, our target will be the 100-day SMA at 105.30, followed by the July high at 107.50. Alternatively, the rate will likely slide down to 100 yen.
Traders' Sentiment
Traders have become somewhat less bullish the US Dollar, but long positions still dominate the market with a 64% share. In the meantime, advantage of sell orders over the buy ones was reduced from 14 percentage points to naught.
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