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USD/JPY determined to reclaim 124

© Dukascopy Bank SA
"With Q2 having been a difficult quarter for many market participants and the FOMC meeting looming next week, there may be some reluctance to rebuild long positions in the USD or short positions in front-end rates."
- BNP Paribas (based on CNBC)

Pair's Outlook
US Dollar struggled again to surpass 124 major level yesterday, as the 20-day SMA provided some resistance. Nevertheless, if the SMA is breached today, we should see the USD/JPY currency pair extends its rally above 124 and meet new resistance at 124.230, namely the weekly S1. Volatility might stretch out to 125, but the pair will be immediately pushed back due to the weekly PP supporting that level. Meanwhile, technical indicators are now showing bullish signs, bolstering the possibility of a positive outcome.

Traders' Sentiment
Traders keep losing confidence in the Buck, as only 46% of positions are long today. The number of buy orders broke out of the equilibrium; they now take up 47% of the market.

© Dukascopy Bank SA


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