USD/JPY bounced off 102.82/72
Pair’s Outlook
The currency pair is currently retreating from the resistance zone consisting of the monthly PP and 100-day SMA. The immediate support is represented by the 20 and 55-day SMAs, but USD/JPY is likely to decline deeper, to the weekly PP and 38.2% Fibo at 102.20. Should the bears push the price even lower, the demand at 101.77/69 (monthly S1 and 16-month up-trend) has the potential to negate the downward momentum and trigger a recovery.
Traders’ Sentiment
There is still an impressive gap between the amounts of long (71%) and short (29%) positions open on USD/JPY, as the market considers the buck to be greatly undervalued. At the same time the current difference between the buy (55%) and sell (45%) orders is negligible.
Source: DukascopyBankSA
