USD/JPY Analysis: Puts 112.60/50 demand area to another test
|"The (Japanese) central bank's actions are negative for JGBs and negative for the yen and will be a factor that helps keep dollar/yen supported."
– BK Asset Management (based on Reuters)
-
Pair's Outlook
A strong US NFP reading on Friday was insufficient for the USD/JPY pair to remain elevated, as weak secondary data weighed on the Buck and caused the support area circa 112.60/50 to be retested. Consequently, this area is expected to provide sufficient support today, causing the US Dollar to close trade in the green zone. The weekly pivot point at 113.19 is the closest resistance, but there is no impetus present today, which has the potential to push the pair that high, excluding external factors of course. Meanwhile, technical indicators are unable to confirm the possibility of the positive outcome. -
Traders' sentiment
There are 58% of traders with a positive outlook towards the US Dollar today, compared to 61% on Friday. At the same time, the share of buy orders inched up from 62 to 61%.
Interested in USDJPY technicals? Check out the key levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.