USD/JPY Analysis: Keeps struggling to edge higher

Dukascopy Bank Team Dukascopy Bank SA

"With sentiment turning to risk-off, investors buy the dollar but they buy the yen more."

– FX Prime (based on Market Watch)

Pair's Outlook
On Friday the US Dollar continued to weaken against the Japanese Yen, following its two-week bearish trend, however, losses were insignificant. The given pair now has sufficient room for a leg up, with the weekly PP and the two-week down-trend forming immediate resistance only around 115.50, meaning the USD/JPY could surge more than 100 pips within the next three days. On the other hand, technical studies cannot fully confirm this outlook, thus, we should not rule out the possibility of the pair continuing to put the monthly S1 at 113.74 to the test.
Traders'sentiment
\Bears grew stronger over the weekend, being that 55% of all open positions are now short (previously 53%). At the same time, the portion of buy orders edged higher, namely from 65 to 73%.

Interested in USDJPY technicals? Check out the key levels

1. R3 114.90
2. R2 114.71
3. R1 114.49
PP 114.29
1. S1 114.08
2. S2 113.88
3. S3 113.67

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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