HomeContributorsTechnical AnalysisUSD/JPY Analysis: Still Anchored To 55-Day SMA

USD/JPY Analysis: Still Anchored To 55-Day SMA

‘The rise in Treasury yields is supporting the dollar. It appears that speculative buying of Treasuries has run its course, with Trump concerns and geopolitical risks no longer fresh news.’ – Daiwa Securities (based on Reuters)

Pair’s Outlook

The Greenback successfully outperformed the Japanese Yen on Thursday, causing another setback in the anticipated decline towards 111.00. Treasury yields keep weighing on the Buck, thus, a negative outcome is most likely today, despite technical indicators being unable to confirm this possibility. The weekly PP and the 55-day SMA now form immediate support, but are likely to fail at holding the losses. The main target at the moment is the 111.00 handle, but a drop that low is yet uncertain, as fundamental data could have a bullish effect on the USD/JPY pair today, in which case intraday losses have a solid chance of completely being erased.

Traders’ Sentiment

Traders remain bearish towards the US Dollar, with 58% of all open positions being short. Purchase orders take up 52% of the market.

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This overview can be used only for informational purposes. Dukascopy SA is not responsible for any losses arising from any investment based on any recommendation, forecast or other information herein contained.

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