USDJPY Analysis: To cross the 103.00 threshold
|"Markets are now having to price the realistic prospect of a Trump victory. In short, that means the dollar is being sold off, safe havens (gold, yen, U.S. Treasurys) are rallying, and risk plays (equities, emerging market assets) are under pressure as shown by the spike higher in the VIX volatility."
- Hantec Markets (based on Market Watch)
-
Pair's Outlook
Demand for safe-haven currencies was higher on Wednesday, causing the USD/JPY currency pair to slump more than 85 pips, with volatility even reaching the 103.00 level. Another decline is likely to take place today, but this time with the 103.00 mark doubtfully limiting the losses. However, around the 102.75 level a rather tough demand area is located, represented by the weekly S2, the Bollinger band, the 55 and the 100-day SMAs. Altogether these levels could prevent the Buck from sustaining sharper losses, whereas a breach would trigger another sell-off, leading the exchange rate to the next support area around 102.00. -
Traders' Sentiment
Market sentiment suddenly turned bullish, with 61% of all open positions now being long (previously 42%). Meanwhile, 57% of all pending orders are to buy the Greenback, up from 48% on Wednesday.
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.