© Dukascopy Bank SA
"I'm going to repeat what I and all my predecessors have always said, which is a strong dollar is good for America."
- Jack Lew, Treasury Secretary (based on Bloomberg)
Pair's Outlook
USD/JPY keeps trading between 119 and 117 for a seventh day in a row, even though the informational background is far from quiet. Eventually the bulls are expected to gain the upper hand and overcome the resistance represented by the monthly PP and 55-day SMA. This should lead to a re-test of the recent highs at 121, then the 2014 high at 122. At the same time, violation of 116 is likely to imply a sell-off, potentially to the up-trend at 113.
Traders' Sentiment
The percentage of long positions in the SWFX market keeps increasing, it has already reached 66%. As for the orders, the portion of the buy ones contracted from 70 to 64%, signifying that demand subsides.
© Dukascopy Bank SA