USD/JPY plummets to 102
Pair’s Outlook
Stabilisation of USD/JPY near 102.72/66, as was expected yesterday, did not turn out to be the case. Instead, the exchange rate fell more than 100 pips and found support only near the 38.2% retracement of the November-December rally. But the key demand area is lower, around the level of 101, where the 50% retracement merges with the 200-day SMA, and until it is violated the outlook will stay bullish.
Traders’ Sentiment
Despite a precipitous decline in USD/JPY, the distribution between the long and short positions is exactly the same as 24 hours ago, when 71% of traders expected the U.S. Dollar to outperform the Japanese Yen. Meanwhile, the share of buy orders declined, from 74% down to 69%.
Source: DukascopyBankSA
