Technical Analysis USD/JPY re-tests monthly pivot point
Pair’s Outlook
Not without some difficulties, but USD/JPY managed to reach the resistance at 101.83/73. However, despite the monthly technical indicators giving ‘buy’ signals, the pair may not advance further. The supply area the U.S. Dollar is facing is formed by the 55-day SMA, monthly PP and up-trend, making it unlikely for the currency to cross. Even if the price does rise, there will also be the 100 and 200-day SMAs respectively at 102 and 102.50 standing in the way.
Traders’ Sentiment
A rally seen yesterday apparently encouraged some of the bulls to make a bet on further appreciation of the Buck—their share went from 70% to 74%. As for the orders, 59% are to buy and 41% are to sell the U.S. Dollar against the Yen.
Source: Dukascopy
