USD/JPY Analysis: In limbo around 114.00, awaits NFP data
|“The OPEC agreement could reinforce yen weakness triggering a full reversal by lifting USD/JPY back towards the 120.00-level.”
- Bank of Tokyo-Mitsubishi (based on FXStreet)
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Pair’s Outlook
As was anticipated, the USD/JPY currency pair underwent a small corrective decline, but remained in a tight range between the immediate support and resistance levels. The Buck is now expected to rally, receiving momentum from the US NFP data later today. The main target is the 116.00 mark, but a surge further could be difficult to achieve, as the psychological resistance is also reinforced by the weekly R2 and the Bollinger band. Moreover, some data could weigh on the US Dollar, limiting the possible gains. Meanwhile, technical indicators also suggest that bulls are likely to prevail, as they keep giving positive signs.
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Traders’ sentiment
Bears grew stronger again, as 62% of all open positions are short today (previously 61%). At the same time, there are slightly less orders to sell the Greenback, namely 55% (down from 60% on Thursday).
Interested in USDJPY technicals? Check out the key levels
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