USD/JPY to keep sliding down

Source: Dukascopy Bank SA

Positions Today Yesterday % Change
Longs 55% 62% -12.73%
Shorts 45% 38% 15.56%
Indicator 4H 1D 1W
MACD (12; 26; 9) Buy Sell Sell
RSI (14) Neutral Neutral Neutral
Stochastic (5; 3; 3) Sell Sell Neutral
Alligator (13; 8; 5) Buy Sell Neutral
SAR (0.02; 0.2) Buy Sell Sell
Aggregate

The Greenback's attempts to recovery against the Yen are likely to be short-lived, as the recent breach from the triangle pattern on the daily chart suggests so. Furthermore, technical indicators are giving distinctly bearish signals, implying a slide back towards 109.22, namely the monthly S1, is possible. Ahead of this area the USD/JPY currency pair has no other solid demand areas, while a resistance line is in fact present. The US Dollar could easily weaken within the next two days and retest the mentioned demand level, but is expected to receive a strong boost from that point, with the Fed rate hike announcement on Wednesday acting as a catalyst.

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