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"The arguments for a 2015 rate hike are fading. More specifically, while we are long-term dollar bulls, the 'trader' in us sees a greater chance of dollar weakness going into and after this week's FOMC meeting."
- BK Asset Management (based on CNBC)
Pair's Outlook
Although USD/JPY is currently negating recent gains, the outlook on the currency pair is bullish, as it is undergoing a correction. After consolidation, which should not extend far beyond the 55-day SMA, the price should rise up to 122, where it will come in contact with a tough resistance level represented by the 100-day SMA. Above this the potential targets will be the monthly R2 at 122.66 and the long-term rising trend-line at 123. The upside pressure will be alleviated once the rate dives under the monthly PP at 120.
Traders' Sentiment
The SWFX market participants remain undecided: 49% are long and 51% are short. In the meantime, among the orders placed 100 pips around the spot 64% are to buy the Dollar against the Yen.
© Dukascopy Bank SA