Dukascopy - Analytics

    Dukascopy

    464.50 6.25/10
    83% of positive reviews
    Real

    USD/JPY probes 200-day SMA

    © Dukascopy Bank SA
    "Irrespective of this surprise easing from the BOJ, the yen remains rather undervalued, especially after this knee-jerk fall past 120. It remains to be seen if this yen move is sustainable."
    - Credit Suisse (based on Reuters)

    Pair's Outlook
    Because of BoJ's unexpected announcement USD/JPY covered the distance between the yesterday's close and 120.50 yen a lot sooner than estimated. However, this does not change the overall picture that the currency pair is still facing a strong supply area, consisting of the 55- and 100-day SMAs. Additional insurance against continuation of Greenback's further appreciation is provided by the 200-day SMA and monthly PP at 121.45/30, meaning there is a high probability of a sell-off from 120.50.

    Traders' Sentiment
    Despite a precipitous decline of the Yen the market sentiment proved to be resilient and stable. The shorts remain in a majority with 74%, while 57% of pending orders are to buy the Dollar.

    © Dukascopy Bank SA

    To leave a comment you must or Join us


    By visiting our website and services, you agree to the conditions of use of cookies. Learn more
    I agree