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"Regarding the question whether I am satisfied after we stopped at JPY78.20…I believe that it was effective to a certain extent"
- Jun Azumi, Japanese Finance Minister (based on WSJ)
Industry outlook
USD/JPY is expected to approach a key resistance area at 78.10/30 (200 day ma) with a possibility of overcoming it. Dips should by halted by support lines situated at 77.33 (55 day ma) and 77.10.
Traders' sentiment
Despite the fact that the US Dollar is the most popular currency and the Japanese Yen is the least popular one, traders' sentiment is mixed on USD/JPY currency pair itself. The present ratio between longs and shorts is 49% to 51%.
Long position opened
FX market participants have put their take profit orders at the key resistance points of intraday trading. Some of the investors might close their deals at 77.77 and 77.93. The highest level is at 78.05.
Short position opened
Major dealers are planning to partially close their short positions if the pair touches upon the first support level at 77.49. However, if the bearish impetus proves to be strong enough, some of the positions could be squared off at S2 of 77.37 and at S3 of 77.21.
© Dukascopy Bank