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    USD/JPY underpinned by monthly pivot

    © Dukascopy Bank SA
    "We see the selloff [in JPY] picking up steam in the fourth quarter because markets don't really react to Federal Reserve hikes until they actually happen."
    - Ebury (based on Bloomberg) 

    Pair's Outlook
    USD/JPY remains under considerable pressure after it failed to surpass 126 (monthly R1). The pair is showing signs of stabilisation around 122.50 (monthly PP), but we should not rule out a deeper decline before the bulls fully recover. The dip may well extend down to 121 yen, namely to the support trend-line and 55-day SMA. Demand should not let the price fall much farther than that, considering there is the monthly S1 and 100-day SMA at 120.50.

    Traders' Sentiment
    SWFX traders' sentiment towards USD/JPY stays neutral, being that the difference between the shares of long (53%) and short (47%) positions is smaller than 10 percentage points. At the same time, there is no gap between the buy and sell orders at all.

    © Dukascopy Bank SA

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