Tue, Nov 29, 2022 @ 14:28 GMT
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USD/JPY Attempts To Trim Monday’s Losses

‘Dollar confidence and positioning is being eroded by erratic policy emissions from the White House. USD has retraced 45% of the Trump rally, but we believe risk-reward favors a deeper setback to USD vs. those pairs that have lagged, most notably JPY.’ – J.P. Morgan (based on Market Watch)

Pair’s Outlook

The Japanese Yen managed to outperform the American Dollar on Monday, ultimately adding 76 pips during the day, with the immediate demand area limiting the losses. The successfully close above the 111.50 mark suggests the USD/JPY pair could rebound today, even though technical studies are unable to confirm this possibility. There are no solid resistances in close proximity to the spot price, implying the pair could keep recovering until the 113.00 level is reached within the next two days. On the other hand, Monday’s decline caused the strong psychological support around 112.60/50 to be pierced, which can now lead to more weakness, with the main target being 110.30.

Traders’ Sentiment

Today 59% of traders are long the US Dollar (previously 58%), whereas the portion of buy orders inched up from 61 to 62%.

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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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