USD/JPY Analysis: attempts to preserve the channel pattern

Dukascopy Bank Team Dukascopy Bank SA

“Among safe haven currencies, investors extended their JPY short exposure by about 30% before the BOJ policy meeting.”

– Deutsche Bank (based on FXStreet)

Pair’s Outlook
Even though the USD/JPY pair remained relatively unchanged yesterday, a small bearish development was still sufficient for the exchange rate to stabilise below the ascending channel’s support line. Nevertheless, the Buck still has the opportunity to recover and, thus, preserve the pattern. However, a rally beyond 113.00 is unlikely to occur, as a tough resistance cluster is located beyond that area. Since technical studies are unable to confirm the possibility of the positive outcome, we should not rule out the risk of a seventh consecutive decline taking place, with the nearest area to limit the losses located only around 111.80.
Traders’ Sentiment
There are 68% of traders being long the Greenback today (previously 56%), while the share of buy orders surged from 47 to 59%.

Interested in USDJPY technicals? Check out the key levels

1. R3 113.03
2. R2 112.91
3. R1 112.80
PP 112.69
1. S1 112.58
2. S2 112.46
3. S3 112.35

Author

Dukascopy Bank Team

Dukascopy Bank SA

Dukascopy Bank stands as an innovative Swiss online banking institution, with its headquarters situated in Geneva, Switzerland.

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