© Dukascopy Bank
"The dollar will rise moderately, and I expect it will hit JPY80 by March"
- Royal Bank of Scotland (based on WSJ)
Despite the fact that 78.25/30 has repelled USD/JPY, the outlook remains positive for the pair. Resistances situated at 76.75 and 76.20 are expected to withstand bearish pressure and help commence recovery of the currency couple.
Traders' sentiment
Traders' sentiment has been little changed since Friday morning. 56% of traders are presently holding longs, whereas 44% of them have preferred to stay short.
Long position opened
Investors should pay close attention to the identified resistance levels for the pair at 77.74, 78.03 and 78.26.
Short position opened
Major market participants with short positions will hold their deals until the price slides down to the initial support level at 77.22. If USD/JPY continues the downtrend, the dealers might wait for the Buck to depreciate to 76.99 or 76.70 Yen.
© Dukascopy Bank