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USD/JPY on the verge of breaking under 119

© Dukascopy Bank SA
"While the widening in US-Japan spreads looks USD-supportive, we suspect that USDJPY is likely to remain range-bound for a little longer."
- TD Securities (based on FX Street)

Pair's Outlook
The Greenback suffered heavy losses against the Yen yesterday. The support cluster around 119.64 failed to stop the fall, while the 20-day SMA succeeded. As a result, USD/JPY stabilised at 119.39, after having tested the 100-day SMA at 119.24. The previous support cluster now acts as a resistance, although further weakness is expected. Poor fundamental figures are likely to push the US Dollar further down to around 119.00 level, which is also backed by the weekly S1. Meanwhile, technical studies retain their mixed signals.

Traders' Sentiment
Slightly less traders now have a positive outlook towards the USD/JPY, as one percentage point less (56%) of all positions are long. The share of buy commands, on the other hand, increased to 67%.

© Dukascopy Bank SA


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