USD/JPY tests 55-hour SMA

Source: Dukascopy Bank SA

Positions Today Yesterday % Change
Longs 74% 71% 4.05%
Shorts 26% 29% -11.54%
Indicator 4H 1D 1W
MACD (12; 26; 9) Sell Sell Sell
RSI (14) Neutral Neutral Neutral
Stochastic (5; 3; 3) Buy Sell Neutral
Alligator (13; 8; 5) Sell Sell Sell
SAR (0.02; 0.2) Sell Sell Sell
Aggregate

Following a reversal from the two-week high of 107.00 late on Wednesday, the US Dollar began weakening against the Yen once again. Thursday's trading session marked a slight tendency south down to the 55-hour SMA circa 106.25. 

Technical indicators suggest that the same bearish sentiment is likely to guide the rate in this session, as well. Thus, the ultimate low for today should be set near the 105.90 level where the 100– and 200-hour moving averages are located. Meanwhile, a possible downside target for the first part of next week should be 105.00. 

In case bulls nevertheless take the upper hand in the market, gains are unlikely to surpass 106.75 where a six-week channel is located.

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