USD/JPY risks falling uder 109.00

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Source: Dukascopy Bank SA

Positions Today Yesterday % Change
Longs 59% 52% 11.86%
Shorts 41% 48% -17.07%
Indicator 4H 1D 1W
MACD (12; 26; 9) Sell Sell Sell
RSI (14) Neutral Neutral Neutral
Stochastic (5; 3; 3) Sell Sell Neutral
Alligator (13; 8; 5) Sell Sell Neutral
SAR (0.02; 0.2) Buy Sell Sell
Aggregate

As was anticipated, the US Dollar outperformed the Japanese Yen on Wednesday, with the exchange rate nearing the 110.00 mark. Another rally today would confirm the birth of a new ascending channel, but technical indicators imply the Greenback is to sustain heavy losses. The key support is still the monthly S1 at 109.22, which should be sufficient to limit the losses. In case this area fails, the next target would become the trend-line around 108.80. Nevertheless, due to the falling wedge getting pierced to the upside yesterday, a small possibility of the USD/JPY pair resuming its bullish trend exists. On the other hand, no other signs point to a potential recovery, thus, risks remain skewed to the downside.

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