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"If you ask whether the dollar is likely to head in the direction of 100 yen or head towards 130 yen, I think it will be the latter."
- Teppei Ino, Bank of Tokyo-Mitsubishi UFJ (based on Reuters)
Pair's Outlook
USD/JPY took a major hit yesterday, plummeting more than 100 pips from the monthly R1. Regardless of the daily and weekly technical indicators being bullish, the US Dollar is vulnerable to continuation of the sell-off to 118. There the pair will already be underpinned by the three-month up-trend and 23.6% Fibo of the Oct-Dec rally and will thus be in a good position to re-challenge this year's highest point at 122.
Traders' Sentiment
At the moment there is no significant difference neither between the open positions (-4 pp) nor between the pending orders (-6 pp). This suggests the traders are undecided regarding the pair and the nearby supports and resistances are of equal strength.
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