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USD/JPY sets off with quiet trade

© Dukascopy Bank SA
"There was some disappointment about the BOJ last week. Everybody is in wait-and-see mode, for the U.S. employment figures."
- Global-info Co (based on Reuters)

Pair's Outlook
Although the Greenback remained strong through most of Friday, the excessive pressure from the weak fundamental data pushed the USD/JPY towards 120.60. Despite bullish technical indicators, the US Dollar still risks falling deeper towards the 120.00 major level, as there has still been no rather gradual sell-off after the 55-day SMA pierced the 200-day one. Moreover, the 55-day SMA is now the immediate resistance, just on top of the opening price, while a cluster around 120.00 should limit intraday downside volatility.

Traders' Sentiment
Both net positions and net orders worsened in the beginning of the week. There are now only 34% of traders holding long positions, whereas 61% of all commands are to buy the Buck, down from 78%.

© Dukascopy Bank SA


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