© Dukascopy Bank
"After the Fed, the dollar will have a harder time continuing this week's gains against the yen. The topside has gotten heavy"
- Bank of Tokyo-Mitsubishi UFJ. (based on CNBC)
Industry outlook
Resistance area at 78.25/35 (200 day ma) has repelled off USD/JPY, sending it down to a cluster of supports at 77.40/20 (55 and 100 day ma). From there the pair is expected to recover and attempt to challenge resistances 79.50 and 80.00.
Traders' sentiment
Slightly more traders have preferred to acquire the Japanese Yen against to American Dollar than to stay long on USD/JPY. As a result, 45% of positions are currently long and 55% of them are short.
Long position opened
While trading this pair, investors should pay attention to the immediate resistance level at 78.18. If the pair manages to go through this level, further resistances are situated at 78.59 and 78.90.
Short position opened
The immediate support line is at 77.46. Should the price step even lower, it will encounter subsequent levels at 77.15 and 76.74, where recovery might start.
© Dukascopy Bank