© Dukascopy
"[Japanese] exports will fall off a cliff"
- Itochu Corp. (based on Bloomberg)
Industry outlook
USD/JPY accelerates its advancement and is moving to 79.46. Slightly higher 80.31 is located which must be overcome to maintain current direction. The initial support is at 76.82/63, followed by subsequent lines at 76.22 and 75.94.
Traders' sentiment
The amount of traders expecting American Dollar to gain in value relative to Japanese Yen has slightly increased and now composes 46.84% of the market. The majority of traders (53.16%) is still bullish on the pair.
Long position opened
The break of the short-term resistance line 78.39 would pave the way for the pair to rise up to 78.70. The clearance of the second daily resistance level would establish a new target for traders at 79.49.
Short position opened
In case of dips, another rally may start after rebounding from the initial support level at 77.61. However, assuming that the bearish momentum does not weaken, investors will pay attention to the lower support levels at 77.14 and 76.35.
© Dukascopy