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USD/JPY rebounds, as market turmoil fades

© Dukascopy Bank SA
"Things are calming down considerably. But the dollar may fall below ¥118, if Shanghai stocks lose momentum again. It seems the dollar may find it top heavy above 118.50."
- Aozora Bank (based on Market Watch)

Pair's Outlook
The USD/JPY approached the up-trend on Thursday, but was unable to maintain trade below it, as the monthly S2 was providing additional support. For the first time this week there has been a rebound in Asian stocks, which contributed to the JPY weakness, allowing the US Dollar to take the upper hand and regain the bullish momentum after confirming the support trend-line. Gains could well extend beyond the monthly S1 at 118.93, unless the US fundamentals have a negative impact on the pair and erase intraday gains. The three-year up-trend is expected to remain intact.

Traders' Sentiment
Only 42% of all open positions are long today (previously 44%). Meanwhile, the share of buy orders lost 10% points, falling to 43%.

© Dukascopy Bank SA


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