USD/JPY trading 55-day SMA

USD/JPY trading 55-day SMA

'The yen at the 98-per-dollar level today is positive for stocks. China’s PMI is also being taken positively, although whether it can last is questionable. Capital-spending data is supportive for an increase in Japan’s economic growth outlook, so that’s also a plus.' - Sumitomo Mitsui Asset Management Co.

Pair's Outlook

Pair started the week slightly below it, but at the moment is trading exactly on the 55-day SMA/downtrend resistance (connecting 7th of July and 23rd of August highs). It is very likely that bulls are still trading on the last week’s bounce and should test 100 day SMA soon. However, it should fail there and return in to the downtrend where 200-day SAM could be our interim target.

Traders' Sentiment

Despite the recent volatility, bulls are continuing to dominate in the market. At the moment they hold 75% of all open positions. That is a 2% increase during the weekend and a 9% increase in the last few days. Distribution of pending orders remains exactly the same-60% to go long, 40% to go short