© Dukascopy Bank
"The pressure is on the downside for dollar-yen"
- Morgan Stanley (based on Bloomberg)
Industry outlook
Support line at 76.22 is being pressured at the moment. Nonetheless, it should remain unbroken and defend subsequent levels - 75.31 and 75.00/74.90. In the long-term USD/JPY is perceived as bullish despite its current weakness.
Traders' sentiment
Presently short positions constitute the largest part (58%) of trades on USD/JPY. On the other hand, long positions form a smaller part - 42%.
Long position opened
FX market participants have put their take profit orders at the key resistance points of intraday trading. Some of the investors might close their deals at 76.66 and 77.00. The highest level is at 77.22.
Short position opened
A part of the brokers will close their short positions near the initial support level at 76.10. In case of downtrend continuation, the pair might rebound from the S2 at 75.88 or S3 at 75.54.
© Dukascopy Bank