Dukascopy - Analytics


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USD/JPY in tight range between 200-day SMA and monthly S1

© Dukascopy Bank SA
"We think September liftoff is not necessarily bad for risk sentiment. Given this view, we still maintain a view that markets will be risk-friendly, and hence look for further yen and euro weakness versus the dollar leading up to the first Fed rate hike."
- UBS Wealth Management (based on CNBC)

Pair's Outlook
The Greenback appreciated against the Yen for the third consecutive day last Friday, closing trade at 121.73. However, the bullish momentum appears to have vanished, as the pair began declining on the weekend. Right now the US Dollar is stuck between the monthly S1 and the 200-day SMA, with neither of the important levels giving in. The base case scenario is still a decline to as far as 120.50, as technical studies retain their bearish signals. Nonetheless, we should not rule out the possibility of a rally up to 122.00, amid a broadly weaker Japanese currency.

Traders' Sentiment
The bullish traders increased from 59 to 62%, while the number of purchase orders, on the other hand, declined from 65 to 53%.

© Dukascopy Bank SA

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