USD/JPY falls back from 104

Note: This section contains information in English only.
Source: Dukascopy Bank SA
© Dukascopy Bank SA
"The fact that dollar-yen was overbought might see it pull back a little bit to a more reasonable level. Geopolitics could be a driver as well, because it strengthens the yen."
- IG (based on MarketWatch)


Pair's Outlook

Regardless of the daily and monthly technical indicators mostly pointing upwards, USD/JPY is currently undergoing a downward correction. At the moment the bears are in control of the market, but are likely to step aside once the rate reaches the demand at 103.50, where the monthly R1 and weekly PP levels coincide. However, if this is not enough to restore the upward momentum, there is also the July high and weekly S1 around 103.

Traders' Sentiment

The last time the sentiment of the SWFX market towards USD/JPY was neutral was back in January. Now there is also no significant difference between the amounts of bullish (54%) and bearish (46%) positions.
© Dukascopy Bank SA

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