Monday, December 5, 2016

USD/JPY has posted gains in the Asian and European sessions

•USD/JPY has posted gains in the Asian and European sessions
•113.86 has switched to a support role following gains by USD/JPY
•114.83 is the next line of resistance
•Current range: 113.86 to 114.83
Further levels in both directions:
•Below: 113.86, 112.48, 111.45 and 110.24
• Above: 114.13, 115.45 and 116.88
USD/JPY ratio is almost unchanged in the Monday session. Currently, short positions have a strong majority (58%), indicative of trader bias towards USD/JPY continuing to move lower.
USD/JPY has started the week with strong gains. Currently, the pair is trading at 114.30. On the release front, Japanese Consumer Confidence dropped to 40.3 points, missing expectations. In the US, today’s key event is ISM Non-manufacturing PMI. The index is expected to improve to 55.3 points.