Technical Analysis USD/JPY heads towards monthly pivot point
Pair’s Outlook
The U.S. Dollar continues to strengthen against the Yen and is about to touch one of the main resistances that lie overhead. Even if USD/JPY overcomes the initial supply zone, created by the monthly PP and 55-day SMA, there will still be a down-trend and 100-day SMA just above 102 that are going to try prevent further appreciation of the Buck. Nevertheless, many experts agree the rate will rise at least to 103 before the end of the third quarter.
Traders’ Sentiment
Although the sentiment towards USD/JPY remains bullish, there was a surprisingly large decrease in the share of long positions—from 70% to 61%, while we are used to seeing 70% or more traders expecting a rally (10-day average is at 72%).
Source: Dukascopy
