© Dukascopy Bank
- GFT (based on WSJ)
Industry outlook
The currency couple continues to be contained by a resistance downtrend, which is about to be eroded. As a result, levels at 83.31/39 and 84.19 will be targeted. In the meantime, losses of the price should be limited by supports at 80.75 and 80.29.
Traders' sentiment
Being that the US Dollar is the second most popular currency among its major counterparts, accordingly bulls (74%) outweigh bears (26%) on USD/JPY.
Long position opened
Major market participants are likely to close their long positions at the key resistance levels. The primary short-term target will be reached at 81.52. The breakout of this level will pave a way for a bullish run up to 81.72 and then to 82.06.
Short position opened
Major market participants with short positions will hold their deals until the price slides down to the initial support level at 80.98. If the price continues the downtrend, the dealers might wait for the price to depreciate down to 80.64 or 80.44.
© Dukascopy Bank