USD/JPY's downside risk increases

Note: This section contains information in English only.
Source: Dukascopy Bank SA
© Dukascopy Bank SA
"Uncertainties over the outlook for the global economy are growing as the economies in the U.S. and China have been doing worse than people anticipated while Europe remains weak"
- Nomura Securities Co. (based on Bloomberg)

Pair's Outlook

USD/JPY is on the verge of breaking out of an upward trending channel, which in turn may lead to a sharp fall. The pair has already eroded an uptrend support line, but preserves potential to return above it and to continue challenging resistances, since currency couple's outlook did not yet turn bearish and key support at 79.49/35 remains intact.

Traders' Sentiment
Being that the Japanese Yen is the least preferred currency, most of market participants have decided to short-sell it against the U.S. Dollar, making USD/JPY overbought to a substantial extent and thus creating significant imbalance in the market. Currently 73% of positions are long and only 27% of them are short. In case the pair advances, rally will be fuelled by buy orders, which exceed sell orders almost three times.

© Dukascopy Bank SA

Actual Topics

Subscribe to "Fundamental Analysis" feed

Subscribe
Pre viac informácií o Dukascopy Bank CFD / Forex obchodných platformách a ostatných záležitostiach
nás prosím kontaktujte alebo požiadajte o hovor od nás.
For further information regarding potential cooperation,
please call us or make callback request.
To learn more about Dukascopy Bank Binary Options / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
Pre viac informácií o Dukascopy Bank CFD / Forex obchodných platformách a ostatných záležitostiach
nás prosím kontaktujte alebo požiadajte o hovor od nás.
To learn more about Crypto Trading / CFD / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
To learn more about Business Introducer and other trading related information,
please call us or make callback request.
For further information regarding potential cooperation,
please call us or make callback request.