USD/JPY Analysis: on the edge of breaking channel pattern
|“There will likely be a two month hiatus before the next overt signalling on a Fed rate hike, enough of a time lag not to immediately undermine the favourable risk and carry environment.”
– Alan Ruskin, Deutsche (based on Business Recorder)
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Pair’s Outlook
The Greenback suffered another loss on Friday, edging 60 pips lower, thus, providing the ascending channel’s lower boundary with an additional confirmation. However, the USD/JPY pair remains under pressure and now risks breaking the pattern to the downside. The plunge could be severe, as the nearest significant area to reverse polarity rests only under 112.00. Even though technical indicators are unable to confirm the possibility of the positive outcome, from the technical perspective this outcome is more likely. The monthly PP and the 100-day SMA form immediate resistance around 113.20. -
Traders’ Sentiment
Bears retreated over the weekend, as now 56% of all open positions are long (previously 60%). At the same time, the number of orders to sell the US Dollar edged up from 55 to 47%.
Interested in USDJPY technicals? Check out the key levels
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