Dukascopy - Analytics


    488.50 6.00/10
    83% of positive reviews

    USD/JPY enclosed between 121.50 and 120.60

    © Dukascopy Bank SA
    "Overall we're seeing a little bit of risk-off...in the market and I think that's what's driving money into the yen."
    - Stephen Innes, OANDA (based on Reuters)

    Pair's Outlook
    While a cluster of numerous studies, including the 100-day moving average and a long-term trend-line, proved to be unable to resist the latest rally, the 200-day SMA successfully weathered increased demand for the Dollar. However, this does not imply a sell-off, being that there is now a significant support area at 120.75/54. Accordingly, the pair needs to breach either 121.50 or 120.75/54 to confirm its intentions. In the first case, the target will be the falling trend-line at 123 yen; in the second, the 2015 low at 115.85.

    Traders' Sentiment
    SWFX traders are not in a hurry to rethink their positions after BoJ's action—72% of them stay short. Meanwhile, the buy orders hold a small advantage (16 pp) over the sell ones.

    © Dukascopy Bank SA

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