© Dukascopy Bank SA
© Dukascopy Bank SA
"As pointed out yesterday, 122.00/05 is a major support and this level will unlikely break so easily. However, 123.20 is still a strong resistance and as long as this level is intact, we could see another attempt towards 122.15/20 before a stronger rebound can be expected."
- UOB Group (based on FX Street)
Pair's Outlook
Despite reaching the 123 major level, the USD/JPY remained relatively unchanged on Monday. The pair advanced only eight pips, with risks of falling deeper down. Nevertheless, the Bollinger band and the 55-day SMA keep bolstering the 122 major level, providing strong support, which might cause the US Dollar to bounce back up. From the upside the target remains the same, namely the 123 psychological level, while technical studies retain mixed signals.
Traders' Sentiment
Although not as strong as yesterday, but market sentiment remains bullish at 72% (previously 73%). The share of purchase orders also declined, now taking up only 67% of the market, compared to 78% yesterday.
© Dukascopy Bank SA
© Dukascopy Bank SA