© Dukascopy Bank
"If the U.S. economy does go into the same kind of slowdown [as in 2011], then I would expect to see the yen strengthen again"
- FX Concepts (based on WSJ)
Industry outlook
Encounter of the currency couple with a key support area at 83.12/82.38 is expected to reignite bullish momentum, which should last until at least 85.53 is attained. Resistances are at 83.98, 84.19 and 84.82.
Traders' sentiment
At the moment most of opened trades (69%) on USD/JPY are long, implying that the currency pair is overbought and may soon start falling.
Long position opened
Leading market participants, who have entered USD/JPY market with a buy trade, are expecting to close their positions at the key resistances at 83.92, 84.14 and 84.44.
Short position opened
In case of dips, another rally may start after rebounding from the initial support level at 83.40. However, assuming that the bearish momentum does not weaken, investors will pay attention to the lower support levels at 83.10 and 82.88.
© Dukascopy Bank