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- Masashi Murata, Brown Brothers Harriman (based on CNBC)
Pair's Outlook
USD/JPY is currently trading just below the strong resistance at 100.88/40, created by the monthly R2 and the September high. However, the upward impetus is not yet considered to have run its course—there remains potential for a surge up to the May high at 103.74, as suggested by the majority of monthly technical indicators (five out of eight are giving ‘buy' signals).
Traders' Sentiment
Regardless of the 40-pip downside gap after the weekend, the ratio between the open long and short positions on USD/JPY remains unchanged, being that 73% of the market participants reckon that the U.S. Dollar will appreciate and only 27% believe in an alternative course of events.
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