© Dukascopy Bank
"The yen is correcting after strengthening too much, which is good for the market"
- Shinkin Asset Management Co. (based on Bloomberg)
Industry outlook
USD/JPY is yet unable to breach a resistance downtrend at 80.74. Accordingly, the currency pair should slide down to a support at 79.15/78.90 (55 week ma), where the price will have a chance to commence recovery.
Traders' sentiment
The Japanese Yen remains as the most unpopular currency among its major counterparts. Therefore preponderance of bulls (73%) in USD/JPY is very much distinct.
Long position opened
Bullish investors should pay attention to the key resistance levels for intraday trading. R1 is situated at 80.04, followed by R2 and R3 at 80.20 and 80.40, respectively.
Short position opened
Major dealers are planning to partially close their short positions if the pair touches upon the first support level at 79.68. However, if the bearish impetus proves to be strong enough, some of the positions could be squared off at S2 of 79.48 and at S3 of 79.32.
© Dukascopy Bank