Dukascopy - Analytics


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    USD/JPY on the verge of breaking the triangle pattern

    © Dukascopy Bank SA
    "Outside JPY, CHF, USD and SEK, it is hard to find a positive currency story, since USD has not converted into an investment currency yet, the Fed's ability to dampen USD appreciation should remain limited and not go beyond a tactical impact."
    - Morgan Stanley (based on PoundSterlingLive)

    Pair's Outlook
    The BoJ retained its negative rate policy yesterday and, thus, strengthened against the US Dollar, causing the USD/JPY currency pair to drop 65 pips. Although the pair is on the edge of breaking its triangle pattern, there is a chance that the volatility will remain contained within the triangle's support and resistance trend-lines. Technical indicators are giving mixed signals, supporting this probability. On the upper side the Buck is also facing the weekly PP at 113.50, which is to contribute to keep the pair's volatility contained, while the triangle's lower border is non-less fragile, being bolstered by the weekly S1 and the 113.00 psychological level.

    Traders' Sentiment
    Bullish traders' sentiment returned to its Monday's level of 74%, whereas the number of sell orders increased from 51 to 56%.

    © Dukascopy Bank SA

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