© Dukascopy Bank
"Strong November data [from Japan] comes as a relief, bolstering confidence in the expansionary capex trend"
- Societe Generale SA (based on Bloomberg)
Industry outlook
Being that USD/JPY was rather calm the preceding week, it is now expected to attempt to pierce through 77.69 once more. Subsequent resistances are at 78.59 (200 day ma) and 79.56 (55 week ma). Supports may be found at 76.60 and 76.52.
Traders' sentiment
The share of long positions opened on USD/JPY pair has slightly increased, up to 58%. Consequently, the portion of short positions has dropped even further, down to 42%.
Long position opened
Initial resistance area for the pair is situated at 76.93. Subsequent goals for the bullish market payers may be found at 77.11 and 77.24.
Short position opened
Major dealers are planning to partially close their short positions if the pair touches upon the first support level at 76.62. However, if the bearish impetus proves to be strong enough, some of the positions could be squared off at S2 of 76.49 and at S3 of 76.31.
© Dukascopy Bank