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USD/JPY Retests Channel’s Resistance

‘The latest rise in Treasury yields is underpinning the dollar, but it is a wait-and-see mood that is mostly prevailing in the market ahead of the Fed’s decision.’ – Barclays (based on Reuters)

Pair’s Outlook

The USD/JPY currency pair behaved in accordance with expectations yesterday, being that it managed to remain above the immediate support area and avoid substantial gains. Nevertheless, the pair remains close to its ascending channel’s upper border; at this point positive US fundamental could trigger an upside breach, with the resistance around 115.60 expected to prevent the Buck from edging further up. Disappointment in the data, on the other hand, is to force the US Dollar to erase most if not all gains against the Yen today. According to technical studies the bullish momentum is to prevail, while we still believe the channel’s resistance is to remain intact.

Traders’ Sentiment

There are 59% of traders holding long positions today (previously 55%). Meanwhile, the share of sell orders inched up from 52 to 56%.

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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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