© Dukascopy Bank
"If you get clearly weak [US] economic data, then the markets will start pricing back easing. As long as there is no clear sign of deterioration in economic data, the market is going to assume now the Fed is done"
- Morgan Stanley (based on WSJ)
Industry outlook
As long as supports at 81.55 and 81.09/00 remain intact, the outlook for the currency couple is positive with the possibility of attaining 83.31/40 in the near-term. Above the latter level we are likely to observe a rally up to 84.19 or even 85.53.
Traders' sentiment
USD/JPY is overbought to a considerable extent, being that long positions constitute 73% of the market, while short ones form only 27% of it.
Long position opened
Bullish investors should pay attention to the key resistance levels for intraday trading. R1 is situated at 83.35, followed by R2 and R3 at 83.89 and 84.80, respectively.
Short position opened
Bearish traders will pay attention to the key support levels to close their deals. The forecast targets are 81.90, 80.99 and 80.45.
© Dukascopy Bank