Dukascopy - Analytics

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    USD/JPY on the edge of breaking the up-trend

    © Dukascopy Bank SA
    "Yield support for the USD should thus continue to build into the Fed meeting. A probable "dovish" Fed hike as Chair Yellen emphasises a gentle trajectory suggests the Dec 16 hike could mark a temporary high for the USD, especially given the temptation to lighten positions into year's end."
    - Westpac (based on FXStreet)

    Pair's Outlook
    The USD/JPY appears to be ignoring positive US fundamental data, as the pair dropped 32 pips lower yesterday, even touching the up-trend over the day. Today trade opened just on top of the support trend-line, which should could a rebound today, with the pair edging closer to the 123.00 major level. Nevertheless, the Greenback is still under sufficient pressure and risks piercing the immediate support cluster. The second target lies just above the 122.00 mark, where the weekly S1 coincides with the monthly R1, forming another possible demand.

    Traders' Sentiment
    Bearish traders' sentiment returned to its Monday's level of 73%, whereas the number of purchase orders increased from 52 to 56%.

    © Dukascopy Bank SA

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