USD/JPY Analysis: In limbo ahead of durable goods orders data

Dukascopy Bank Team Dukascopy Bank SA

"Our basic stance is that the correction in the USD/JPY will halt at ¥110-115, but we should be paying closer attention to downside risk at least for the short term."

– Deutsche Bank (based on FXStreet)

Pair's Outlook
The less favourable for the US Dollar scenario prevailed on Friday, causing the pair to edge lower once again. Nevertheless, the USD/JPY pair managed to retain its position above the 112.00 handle, which in turn is supported by the 100-day SMA, the lower Bollinger band and the weekly S1, while the 111.75 mark also acts as a tough psychological support. Consequently, another bearish development is unlikely, despite technical indicators suggesting so. The Greenback could easily reach the 113.00 level today, should the fundamentals provide a sufficient boost later during the day; however, disappointing data could still cause a downside reaction.
Traders' sentiment
Market sentiment remains bullish, now at 61% (previously 54%). Meanwhile, the portion of buy orders edged down from 67 to 59%. \

Interested in USDJPY technicals? Check out the key levels

1. R3 114.23
2. R2 113.85
3. R1 113.30
PP 112.92
1. S1 112.37
2. S2 111.99
3. S3 111.44

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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