USD/JPY Analysis: Remains on the back foot

Dukascopy Bank Team Dukascopy Bank SA

"The markets are used to news of North Korea's missile tests by now, and the dollar/yen is unlikely to move much unless there is some further escalation of the situation."

– Sony Financial Holdings (based on Reuters)

Pair's Outlook
Even though Friday's fundamentals turned out to be better than expected, the Core Durable Goods Orders still weighed on the Buck, ultimately resulting in the USD/JPY pair weakening that day. As a result, the pair prolonged its consolidation, once again putting the 111.00 level to the test. Technical indicators today suggest the Greenback could attempt to pierce the 111.00 mark to the downside again, which would leave the tough support cluster around 110.30 to limit the losses in the future. Trade is likely to be relatively flat this week ahead of Friday's NFP data.
Traders' sentiment
There are 57% of traders holding short positions today, compared to 58% on Friday. Meanwhile, all pending orders in the 100-pip range are equally divided between the buy and the sell ones.

Interested in USDJPY technicals? Check out the key levels

1. R3 111.48
2. R2 111.40
3. R1 111.31
PP 111.24
1. S1 111.15
2. S2 111.07
3. S3 110.98

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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