© Dukascopy Bank
"Investors are turning risk averse"
- Daiwa SB Investments Ltd. (based on Bloomberg)
Industry outlook
USD/JPY has recently traded flat and may still reach lower levels at 79.15/78.90 (55 week ma), given that a resistance line situated at 80.64 is a tough level. The latter level guards 82.30 and 83.31/39.
Traders' sentiment
An absolute majority of traders (70%) have preferred to open long positions on USD/JPY, expecting the Greenback to gain in value relative the Japanese Yen.
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 80.06. The breakout of this level will pave a way for a bullish run up to 80.26 and then to 80.44.
Short position opened
A part of the brokers will close their short positions near initial support level at 79.68. In case of downtrend continuation, the pair might rebound from the S2 at 79.50 or S3 at 79.30.
© Dukascopy Bank