© Dukascopy Bank
"Capital flows are much more important for the yen than trade flows"
- Societe Generale (based on CNBC)
Industry outlook
USD/JPY currency couple has penetrated a number of resistances and is anticipated to continue rising. The initial goal for the pair is at 78.29/37 (200 day ma). Above it USD/JPY will encounter 79.49 (55 week ma) and 80.00, should it extend its current rally.
Traders' sentiment
Traders' sentiment is neutral on USD/JPY, since the amount of long and short positions is nearly the same, both being 50% of the market, even though the American Dollar is the most popular currency at the moment.
Long position opened
Investors should pay close attention to the identified resistance levels for the pair at 78.03, 78.39 and 78.93.
Short position opened
A part of the brokers will close their short positions near initial support level at 77.13. In case of downtrend continuation, the pair might rebound from the S2 at 76.59 or S3 at 76.23.
© Dukascopy Bank