USDJPY Analysis: Attempts to undergo a correction

"At the very least the view is that Trump's economic policies will be delayed over this [latest US political turmoil], and the dollar is being sold."

– Matsui Securities (based on The Business Times)

  • Pair's Outlook
    The USD/JPY pair experienced a rather devastating blow on Wednesday, losing more than 200 pips amid continued political turmoil in the US. After such a large slump the Buck is likely to undergo a bullish correction, unless political pressure keeps weakening the Greenback. Moreover, the monthly PP and the weekly S3 around 110.45 are providing rather strong support, which could be sufficient for a recovery to prevail. The nearest resistance rests at 111.40, namely the weekly S2, most likely marking the intraday high. The base case scenario is a close somewhere between 110.50 and 111.50.

  • Traders' Sentiment
    There are 61% of traders holding short positions today (previously 66%), while the share of buy orders added 10% points, having risen to a total of 59%.

USDJPY

 

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

    1. R3 114.76
    2. R2 113.95
    3. R1 112.39
  1. PP 111.59
    1. S1 110.03
    2. S2 109.22
    3. S3 107.66

 

This overview can be used only for informational purposes. Dukascopy SA is not responsible for any losses arising from any investment based on any recommendation, forecast or other information herein contained.