‘Dollar/yen is holding up, despite the weaker U.S. GDP.’ – Mizuho Securities (based on Reuters)
Pair’s Outlook
In spite of a an extremely weak US GDP reading on Friday, the US Dollar managed to outperform the Japanese Yen, adding 27 pips. The Buck managed to retain its strength over the weekend, eager to take another shot at climbing over the 55-day SMA. The given SMA represents immediate resistance, which is considered to be the only solid obstacle on the path towards the descending channel’s resistance line. The Greenback appears to be lacking impetus to breach the 55-day SMA at the moment, therefore, a close at 111.60 or lower remains highly possible, especially since technical indicators keep giving mixed signals and the RSI specifically is close to the turnaround point.
Traders’ Sentiment
Today 53% of all open positions are long, compared to 51% on Friday. Meanwhile, the number of purchase orders inched up from 57 to 67%.
