USD/JPY pobes key support
Pair’s Outlook
The monthly S1 level, which had the potential to stop the sell-off from 104, was breached. This left the key demand area at 101.36/19 exposed. However, being that this zone is fairly dense (it consists of the long-term rising trend-line, 200-day SMA and 50% Fibo retracement), there is a high chance that the value of the U.S. Dollar will not decline further, but instead we will see emergence of a sustainable recovery.
Traders’ Sentiment
The bulls, despite U.S. Dollar’s poor performance, do not back down. They do quite the opposite—they increase the exposure towards the currency. Right now 74% of traders expect the buck to appreciate and only 26% of them have a different opinion.
Source: DukascopyBankSA
