© Dukascopy
"Japanese authorities [are likely] to intervene again should the yen appreciate to 75 against the greenback"
- Eisuke Sakakibara (based on CNBC)
Industry outlook
USD/JPY is currently directionless and is not expected to move in particular direction on Tuesday, as price's maneuvers should be limited by support at 76.58 and resistances situated at 77.29/32 and 78.07.
Traders' sentiment
Even though the Japanese yen is presently the least attractive currency, the portion of long positions has diminished to 40.63% of the market, while shorts have surged up to 59.37% thus drastically changing the situation.
Long position opened
The break of the short-term resistance line 77.03 would pave the way for the pair to rise up to 77.12. The clearance of the second daily resistance level would establish a new target for traders at 77.35.
Short position opened
In case of dips, another rally may start after rebounding from the initial support level at 76.80. However, assuming that the bearish momentum does not weaken, investors will pay attention to the lower support levels at 76.66 and 76.43.
© Dukascopy