USDJPY Analysis: Attempts to reclaim 113.00

Dukascopy Bank Team Dukascopy Bank SA

"The BOJ is closer to the limits of their unconventional monetary policy than any other central bank. Capital flows will be so intense, if the BOJ insisted on keeping the nominal rate anchored, the impact on dollar-yen would lead to other distortions and policy reactions from other countries."

– Eurizon SLJ Capital Ltd. (based on Bloomberg)

Pair's Outlook
Lack of certainty concerning the US tax reforms triggered USD-selling, causing it to drop 69 pips against the Japanese Yen yesterday. Thursday's bearish development still does not change the overall picture, as the pair remains in its consolidation trend. The demand cluster just under the 112.00 mark represents the lower boundary, whereas the resistance area just under 115.00 is the upper border. According to the recent developments, a positive outcome today is the most probable scenario, with trade closing circa 113.10. However, we should not rule out the possibility of another leg down, as technical indicators keep giving mixed signals in the daily timeframe.
Traders' Sentiment
There are 54% of traders being long the Buck today (previously 53%). At the same time, the share of purchase orders inched up from 65 to 67%.

Interested in USD/JPY technicals? Check out the key levels

1. R3 114.61
2. R2 114.20
3. R1 113.91
PP 113.50
1. S1 113.20
2. S2 112.79
3. S3 112.50

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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