USD/JPY on the verge of breaking the channel
"I find it hard to believe that Japanese players have been actively selling the yen and taking on foreign exchange risk after the (BOJ's) launch of negative interest rates."
- Shinji Kureda, Sumitomo Mitsui Banking Corporation (based on CNBC)
Pair's Outlook
The USD/JPY currency pair took another step closer towards the current bearish channel's resistance line, but with the bullish momentum limited, amid the 20-day SMA somewhat providing resistance. The pair extends the up-leg after piercing the 20-day SMA, but with supply, represented by the channel's upper border, stopping the rally. In case the pair manages to break out from the pattern, the next target to limit the gains would then be the weekly R1 at 113.85. Fundamental data, on the other hand, could still cause the pair to drop back under the 113.00, with the immediate support in face of the 20-day SMA failing to hold the losses.
Traders' Sentiment
Almost three quarters (74%) of all open positions are currently long, whereas the share of purchase orders edged up from 57 to 66%.
- Shinji Kureda, Sumitomo Mitsui Banking Corporation (based on CNBC)
Pair's Outlook
The USD/JPY currency pair took another step closer towards the current bearish channel's resistance line, but with the bullish momentum limited, amid the 20-day SMA somewhat providing resistance. The pair extends the up-leg after piercing the 20-day SMA, but with supply, represented by the channel's upper border, stopping the rally. In case the pair manages to break out from the pattern, the next target to limit the gains would then be the weekly R1 at 113.85. Fundamental data, on the other hand, could still cause the pair to drop back under the 113.00, with the immediate support in face of the 20-day SMA failing to hold the losses.
Traders' Sentiment
Almost three quarters (74%) of all open positions are currently long, whereas the share of purchase orders edged up from 57 to 66%.