USD/JPY to slide back to 110.00

Source: Dukascopy Bank SA

Positions Today Yesterday % Change
Longs 62% 59% 4.84%
Shorts 38% 41% -7.89%
Indicator 4H 1D 1W
MACD (12; 26; 9) Sell Sell Sell
RSI (14) Neutral Neutral Neutral
Stochastic (5; 3; 3) Sell Neutral Neutral
Alligator (13; 8; 5) Neutral Sell Neutral
SAR (0.02; 0.2) Buy Sell Sell
Aggregate

The USD/JPY currency pair confirmed the ascending channel pattern with its recovery from the 109.40 area, with the exchange rate now continuing to test the upper boundary. The trend-line is now also coinciding with the 200-hour SMA, which altogether should cause the Buck to slightly weaken against the Yen, allowing the pair to slide back to 110.00, thus, retesting the pattern's support line. Technical indicators in all timeframes support this possibility, but before this scenario plays out temporary volatility breaches to the upside could occur, due to yesterday's excessive USD-buying. The majority, namely 62%, are still buying the Greenback, although it is still far from being overbought, which could mean bad news for the channel, as upside breakout risks emerge.

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