USD/JPY Analysis: On the edge of breaking its three-week down-trend

Dukascopy Bank Team Dukascopy Bank SA

"The upside test above the ¥115-line remains on hold, ahead of Trump's speech, we are seeing an intensifying mood to sit on the fence."

– Tokyo Forex & Ueda Harlow (based on Market Watch)

Pair's Outlook
Fed Yellen's comments on Wednesday provided the US Dollar with a strong boost, which allowed the USD/JPY to erase both Monday's and Tuesday's losses. The pair now faces its three week down-trend, which, technically, could provide sufficient resistance for a U-turn, not to mention the trend-line being bolstered by the weekly PP. Technical studies also support this outlook, but the Greenback could still retain its strength from Janet Yellen's speech, which would result in the down-trend losing its credibility. The next target would then be the 116.10 level, where the 20-day SMA coincides with the monthly PP.
Traders' sentiment
Market sentiment remains in perfect equilibrium for the third consecutive day, but the number of purchase orders lost 13 percentage points over the day. The orders now take up 57% of the market.

Interested in USDJPY technicals? Check out the key levels

1. R3 116.77
2. R2 115.58
3. R1 114.94
PP 113.75
1. S1 113.12
2. S2 111.93
3. S3 111.29

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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