USDJPY Analysis: Attempts to undergo a correction
|"At the very least the view is that Trump's economic policies will be delayed over this [latest US political turmoil], and the dollar is being sold."
– Matsui Securities (based on The Business Times)
-
Pair's Outlook
The USD/JPY pair experienced a rather devastating blow on Wednesday, losing more than 200 pips amid continued political turmoil in the US. After such a large slump the Buck is likely to undergo a bullish correction, unless political pressure keeps weakening the Greenback. Moreover, the monthly PP and the weekly S3 around 110.45 are providing rather strong support, which could be sufficient for a recovery to prevail. The nearest resistance rests at 111.40, namely the weekly S2, most likely marking the intraday high. The base case scenario is a close somewhere between 110.50 and 111.50. -
Traders' Sentiment
There are 61% of traders holding short positions today (previously 66%), while the share of buy orders added 10% points, having risen to a total of 59%.
Interested in USD/JPY 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.