© Dukascopy Bank SA
- Imre Speizer, Westpac (based on Bloomberg)
Pair's Outlook
USD/JPY keeps grinding lower, as there are no significant concentrations of demand nearby. The closest price level that may act as a more or less reliable floor is at 106.50, where the 55-day SMA merges with the weekly S1. A little lower, namely at 105.89/58, there is the weekly S2 together with the monthly S1. In the long-term perspective, unless the support at 103 is broken, the outlook will stay distinctly bullish.
Traders' Sentiment
Despite the percentage of short positions falling, they are still in majority with 56% of the market (59% last Friday). In the meantime, there is no real difference between the numbers of orders placed to buy (53%) and to sell (47%) the Greenback.
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