© Dukascopy Bank SA
- National Australia Bank (based on Bloomberg)
Pair's Outlook
Although at first it seemed that 108 will now represent the lower boundary of the trading range for USD/JPY, the currency pair dipped below this level, meaning the correction is likely to drag on. The immediate support is at 107.22, but neither this level nor the weekly S3 at 106.43 are deemed able to stop the decline. The demand at 106, on the other hand, has a much higher chance of success—it is formed by the monthly S1 and 55-day SMA.
Traders' Sentiment
The majority of the SWFX market participants remain confident the US Dollar is going to weaken against the Japanese Yen—41% are holding long positions and 59% are holding short ones. But the share of buy orders contracted from 58 to 52%.
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