© Dukascopy Bank SA
- Hantec Markets (based on Market Watch)
Pair's Outlook
Demand for safe-haven currencies was higher on Wednesday, causing the USD/JPY currency pair to slump more than 85 pips, with volatility even reaching the 103.00 level. Another decline is likely to take place today, but this time with the 103.00 mark doubtfully limiting the losses. However, around the 102.75 level a rather tough demand area is located, represented by the weekly S2, the Bollinger band, the 55 and the 100-day SMAs. Altogether these levels could prevent the Buck from sustaining sharper losses, whereas a breach would trigger another sell-off, leading the exchange rate to the next support area around 102.00.
Traders' Sentiment
Market sentiment suddenly turned bullish, with 61% of all open positions now being long (previously 42%). Meanwhile, 57% of all pending orders are to buy the Greenback, up from 48% on Wednesday.
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