USDJPY Analysis: Stuck between the weekly PP and 23.60% Fibo

Dukascopy Bank Team Dukascopy Bank SA

"USD/JPY continues to consolidate at the 100 week ma at 114.74, this together with a divergence of the daily RSI and a 13 count does point to a near term correction lower/consolidation."

- Commerzbank (based on FXStreet)

Pair's Outlook
In spite of all bullish signs, the Greenback failed to edge higher against the Japanese Yen yesterday, as the 23.60% Fibo provide to be too strong to pierce. However, the USD/JPY pair did not suffer substantial losses, with the immediate support, namely the weekly PP, remaining intact. Technical indicators insist the Buck is to climb up today, but a bearish development is more probable, since the pair remains close to this week's strong resistance. Due to lack of market movers bears are unlikely to push the US Dollar below the 113.25 level, where the weekly pivot point rests.
Traders' Sentiment
Once again 62% of traders hold short positions (previously 59%). Meanwhile, the portion of purchase orders increased, having risen from 50 to 52% in the last 24 hours.

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

1. R3 115.33
2. R2 114.88
3. R1 114.32
PP 113.87
1. S1 113.31
2. S2 112.86
3. S3 112.30

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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