USD/JPY closed downside gap, selling opportunity coming?
Hi traders, the USD/JPY pair closed this week's downside gap on a broad USD strength, but the Nikkei and SPX still show a strong divergence to the downside.
The dollar index is reaching multi-year highs near 100 and the 2y and 5y US yields don't show to be catching up with the dollar.
Positioning in the futures market through last Tuesday show an increasing bullish sentiment in the JPY.
From a technical standpoint, the pair reached the 61.8% Fib level of the recent down-move which formed a confluence with a strong daily resistance.
The dollar index is reaching multi-year highs near 100 and the 2y and 5y US yields don't show to be catching up with the dollar.
Positioning in the futures market through last Tuesday show an increasing bullish sentiment in the JPY.
From a technical standpoint, the pair reached the 61.8% Fib level of the recent down-move which formed a confluence with a strong daily resistance.
