Tue, Mar 28, 2023 @ 15:15 GMT
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USD/JPY Analysis: Sets Eye on 108.00

"It is unclear whether the situation over North Korea will escalate into military action, but uncertainty is increasing and the dollar continues to edge lower. The dollar also looks shaky technically, after slipping below the 200-day moving average of 108.80 yen."

– Mizuho Securities (based on Reuters)

Pair’s Outlook

The US Dollar weakened against the Japanese Yen again on Friday, amid soft US fundamentals weighing on the Greenback. As a result, the pair failed to rebound from the descending channel’s support line, breaching the tough demand area around 108.90, which resulted in more weakness earlier today. The Buck is now expected to approach the 108.00 level, where support could be sufficient for the bullish momentum to be regained. A failure to recover this weak might lead to a slump towards July-September 2016 lows, namely closer to the 100.00 handle. However, longer-term technical studies point to a potential recovery by April’s end.

Traders’ Sentiment

There are 72% of traders holding long positions today, whereas 57% of all pending orders are to acquire the US Dollar.

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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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