‘According to our long-term valuation models, the yen remains significantly undervalued against the US dollar despite modest gains early this year.’ – BTMU (based on FXStreet)
Pair’s Outlook
Friday ended with the USD/JPY currency pair putting the bearish trend-line to another test, but ultimately leaving it intact. Another attempt was made earlier today, when the pair opened with a bullish gap and tried to reclaim the 114.00 mark. The weekly R1, however, appears to be providing strong resistance, which could cause the Buck to be sold sufficiently, making bears take over the market today. In this case the down-trend will be preserved once again, although risks of a breakout are now high. Either way the second resistance area around 114.30 is expected to hold, whereas any bearish development is to be limited by the 20-day SMA circa 113.38.
Traders’ Sentiment
Bulls lost some numbers over the weekend, being that 58% of all open positions are now long (previously 61%).
