HomeContributorsTechnical AnalysisUSD/JPY Attempts To Make Another U-Turn

USD/JPY Attempts To Make Another U-Turn

‘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

Fortunately for the US Dollar, it managed to avoid substantial losses against the Japanese Yen yesterday. Nonetheless, a new four-month low was reached, but with the USD/JPY pair once again remaining above the 110.60 level, which appears to be providing strong psychological support. As a result, the Greenback has the opportunity to post gains today, as another leg down would cause a breach of this support. Moreover, the weekly S1 and the Bollinger band are somewhat bolstering the psychological demand area, even though technical studies are unable to confirm the possibility of a recovery.

Traders’ Sentiment

Market sentiment remains bullish, as 71% of all open positions are long, compared to 72% yesterday. At the same time, the portion of orders to acquire the Buck inched up from 65 to 66%.

Dukascopy Swiss FX Group
Dukascopy Swiss FX Grouphttp://www.dukascopy.com/
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