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- Societe Generale (based on FXStreet)
Pair's Outlook
Despite the USD/JPY pair being supported by a strong demand area, bears still managed to push the pair lower on Monday. However, the four-week up-trend is only closer now, implying that the bullish momentum is likely to be regained. Technical studies both in the daily and the weekly timeframes support the possibility of a rally. The closest resistance is located only around 116.50, leaving sufficient space for a strong rally. On the other hand, there are no solid market drivers present today that could trigger such a substantial upside movement; thus, the Buck is expected to remain between 115.00 and 116.00.
Traders' Sentiment
Bears keep losing numbers, as 57% of all open positions are short today, compared to 60% on Monday. As for the pending orders, 60% of them are to sell the Greenback, just one percentage point more.
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