Dukascopy - Analytics

    Dukascopy

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    USD/JPY tumbled unexpectedly

    © Dukascopy Bank SA
    "I still think the bias for the dollar is to strengthen particularly when you consider it's always against something else. And that something else are other currencies whose central banks are either cutting rates or initiating some form of quantitative easing."
    - Janney Montgomery Scott (based on WBP Online)

    Pair's Outlook
    US Dollar's behaviour surprised last Friday, as the Buck plunged versus the Yen. USD/JPY tested the weekly S2, which prevented a larger decline. Ultimately, the Greenback lost 72 pips, as it settled at 120.02. However, a rebound is expected to take place today, even though the technical studies are showing mixed signals. The rally is likely to encounter an obstacle around 120.30, represented by the weekly PP and 20-day SMA.

    Traders' Sentiment
    Market sentiment remains strongly bullish, as 60% of positions are long. Nevertheless, the portion of orders to acquire the Greenback contracted, as only 39% are to benefit from the Dollar's appreciation.

    © Dukascopy Bank SA

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