Dukascopy - Analytics


    485.50 6.00/10
    83% of positive reviews

    USD/JPY muted around 119.50, awaits a trigger

    © Dukascopy Bank SA
    "We have seen a 50% reduction of USD long holdings this year from speculative funds, largely as a result of tightening financial conditions turning the Federal Reserve more dovish and the market moving to push out its pricing for the first rate hike until May 2016."
    - IG Securities (based on WBP Online)

    Pair's Outlook
    Despite having tested the immediate support, the USD/JPY still managed to edge higher yesterday, somewhat strengthened by the improvement in the NAHB Housing Market Index. Nevertheless, technical studies retain their bearish signals in the daily timeframe, insisting the Buck is to sustain losses. The immediate resistance and support clusters remain unchanged, meaning that a significant fundamental event is to drive the exchange rate today. The base case scenario is a decline not lower than the 118.50 area, a ten-month support, now also bolstered by the monthly and weekly S1s.

    Traders' Sentiment
    There are more bullish traders today (71%), compared to 70% yesterday, while the ratio of buy and sell orders is now equal to one.

    © Dukascopy Bank SA

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