USD/JPY Analysis: Takes a breath after Wednesday’s surge
|“I think it is just a matter of time that the dollar will test 115 yen after Mnuchin was silent about the dollar's strength.”
- Mizuho Securities (based on Reuters)
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Pair’s Outlook
Amid strong US fundamental figures on Wednesday, the American Dollar gained more than 200 pips against the Japanese Yen, thus, climbed over the 23.60% Fibo level, which caused the pair to exit its ascending channel pattern. The Buck now has a chance to not only retake the 115.00 level, but even the 116.00 mark, despite the weekly R2 and the Bollinger band forming relatively strong resistance there. However, the USD/JPY pair is first required to pierce the weekly R1 at 114.70, which appears to be causing setbacks in the Greenback’s bullish trend. As a result, a small corrective decline is possible today, but with the 113.00 mark remaining intact.
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Traders’ sentiment
There are 61% of traders with a negative outlook towards the US Dollar. Meanwhile, 60% of all pending orders are to sell the US Dollar.
Interested in USDJPY technicals? Check out the key levels
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