© Dukascopy Bank SA
- ING (based on Reuters)
Pair's Outlook
Following a test of the formidable resistance area formed by the 55 and 100-day SMAs, USD/JPY gave in to the bearish sentiments and as a result, is eroding the 200-day SMA at 97.90. If this support does not hold and allows 97.21/04 to be breached as well, the decline is likely to persist for a prolonged period of time, potentially until the Jun low at 93.78 is reached.
Traders' Sentiment
The recent changes in the distribution between the long and short positions on USD/JPY remain insignificant. The bulls retain the dominant position by populating 71% of the market (73% yesterday). As for the orders, 66% of them are aimed at purchasing the buck against the yen.
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