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- Societe Generale (based on Bloomberg)
Pair's Outlook
USD/JPY is still in a correction phase after a sharp rally on Friday. The immediate support is at 118.39, followed by a dense demand area at 118, where the monthly PP coincides with the 23.6% Fibo. The positive bias is reinforced by the daily and weekly studies, as there are more indicators pointing up than down, though the monthly signals are still mixed. Nevertheless, the Buck should be able to reach the monthly R1 at 120 in the next few days.
Traders' Sentiment
The current bullish sentiment is marginally stronger than 24 hours ago, as 62% of traders are long the Dollar. At the same time, the percentage of buy orders placed 100 pips from the spot is considerably lower than yesterday, 66% versus 86%.
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