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"The dollar will target JPY 78.30"
- Barclays Capital (based on WSJ)
Industry outlook
USD/JPY has recently penetrated 77.17/32 (55 and 100 day ma) and is now about to challenge a key resistance level at 78.09/29 (200 ma). From below the currency pair is supported by 77.10 and 76.65.
Traders' sentiment
Bullish traders strengthened their position. Currently 58% of the overall number of market participants stay long on USD/JPY, whereas 42% expect the Japanese Yen to appreciate relative to the American Dollar.
Long position opened
The initial resistance level for intraday trading is 77.91. Bulls might establish additional targets at 78.17 and 78.62 if the Greenback gains in value even more.
Short position opened
Bearish traders will pay attention to the key support levels in order to close their deals. The primary forecast target is 77.20. If the pair erodes this level, then it might rebound from S2 of 76.75 or S3 of 76.49.
© Dukascopy Bank