Thu, Jun 08, 2023 @ 17:45 GMT

USD/JPY: 110.00 Eyed

‘The Trump reflation trade could still reverse course in a more meaningful way, resulting in dollar weakness.’ – MUFG (based on Business Recorder)

Pair’s Outlook

The Buck succeeded in reversing polarity, but only for a day, as the bearish momentum returned over the weekend. Trade opened with the USD/JPY pair erasing all Friday’s gains, with the 111.00 major level getting a full-blown downside breach. The Greenback now risks dropping towards the 110.00 level, with the only support on the pair’s path being the lower Bollinger band and the weekly S1 around 110.35. In case the Buck falls under 110.00, the monthly S2 at 109.74 could still save it from further weakness, but a failure would open the door for a plunge to 108.00, being that no political or economical driver triggers a rebound earlier.

Traders’ Sentiment

Market sentiment suggests that the US Dollar might be overbought, as 72% of all open positions are currently long.

Dukascopy Swiss FX Group
Dukascopy Swiss FX Group
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.

Featured Analysis

Learn Forex Trading