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"I'm a bit skeptical about how long the yen's slide will continue. Financial markets appear to have a bleak view on the impact of negative interest rates on the economy."
- Societe Generale (based on CNBC)
Pair's Outlook
The USD/JPY currency pair overperformed on Friday, as the Japanese Yen lost more than 200 pips against the Buck on the negative loan rate rumours. The Greenback, however, now faces a tough resistance area around 112.30, namely the 55-day SMA, the down-trend and the monthly PP, which is likely to cause the pair to make a U-turn. In this case the monthly S1, the weekly PP and the 20-day SMA are to provide support around 110.35, but technical indicators in the daily timeframe are unable to confirm this scenario. As a result, the US Dollar could still recover from its intraday low and surge approximately 50 pips, putting the down-trend to a full-scale test.
Traders' Sentiment
Today there are 73% of traders having a positive outlook towards the American Dollar, compared to 71% last Friday.
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