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USD/JPY keeps finding support at 117

© Dukascopy Bank SA
"Until we get another policy maneuver from the BOJ, you're not going to see a massive impetus in the short-yen trade."
- Commerzbank (based on Bloomberg)

Pair's Outlook
For the time being the weekly S1 at 117 acts as a reliable support, even though the downside risks prevail in the near term. USD/JPY is still considered vulnerable and may decline down to 116. However, a sell-off beyond that point is unlikely unless the pair fails to breach the down-trend until the end of February. USD/JPY will then complete a descending triangle, a pattern that is indicative of weakening demand and an increased possibility of a decline.

Traders' Sentiment
The distribution between the longs (62%) and shorts (38%) is completely unchanged compared to the yesterday's readings. On the other hand, the percentage of orders to buy the Buck soared from 53 to 68%.

© Dukascopy Bank SA


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