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– Toshihiko Sakai, Mitsubishi UFJ Trust and Banking (based on Market Watch)
Pair's Outlook
The USD/JPY currency pair experienced another leg down on Wednesday, thus, reconfirming the bearish trend-line. However, the Buck managed to retain its position above the 113.00 mark, indicating a possible rebound today. The four-week down-trend and the monthly S1 are still providing relatively strong resistance, which could keep the pair at bay. Technical studies are also in favour of the negative outcome, suggesting the down-trend is to be preserved. In case the immediate resistance is pierced, the next target will be the cluster around 114.35, formed by the weekly PP and the 55-day SMA. Meanwhile, the main target from below is still the 112.59 psychological demand level.
Traders' Sentiment
Today 54% of traders are long the US Dollar (previously 51%). At the same time, the number of purchase orders inched up from 59 to 60%.
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