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    USD/JPY to remain stuck around 124.00

    © Dukascopy Bank SA
    "We think it [BoJ] is likely to maintain its current monetary easing framework, in light of three factors: (1) we believe it will maintain its upbeat assessment of the economy; (2) June CPI data indicate inflation continues to improve; and (3) the financial and currency markets remain stable overall."
    - BAML (based on FXStreet)

    Pair's Outlook
    The US Dollar slightly overperformed, as it appreciated 34 pips against the Japanese Yen, rather than expected 25. The USD/JPY, however, risks falling back down, despite bullish technical indicators. The upper Bollinger band retains its role as the immediate resistance and is likely to prevent the Greenback from edging higher, same as yesterday. As a result, we should see the Buck slide down to the 124.00 support cluster, unless the US fundamentals surprise with better-than-expected figures. 

    Traders' Sentiment
    Both net positions and net orders declined over the day. Only 67% of traders are long the US currency today (previously 75%), whereas 65% of orders are now to acquire the Greenback, down from 70%.

    © Dukascopy Bank SA

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