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    USD/JPY charges at 121

    © Dukascopy Bank SA
    "Based solely on the fundamental drivers of a widening interest-rate spread and increased yen outflows, it wouldn't be odd to see the yen weaken to 140 per dollar over the next two years."
    - Nomura Holdings Inc. (based on Bloomberg)

    Pair's Outlook
    As it turns out, USD/JPY is currently neither able to push through the resistance at 121, nor to penetrate the support at 119. Nevertheless, the bias is to the upside—the technical indicators are mostly pointing upwards, and the currency pair is underpinned by the up-trend and monthly PP. Accordingly, the US Dollar should soon re-test the 2014 low while staying within the boundaries of the bullish channel, namely above 119.

    Traders' Sentiment
    The sentiment is neutral towards USD/JPY, as the difference between the long (51%) and short (49%) positions is insignificant. Meanwhile, an overwhelming majority (77%) of the pending orders are set to purchase the US Dollar against the Yen.

    © Dukascopy Bank SA

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