‘Dollar/yen is holding up, despite the weaker U.S. GDP.’ – Mizuho Securities (based on Reuters)
Pair’s Outlook
Although the immediate resistance was not pierced yesterday, the USD/JPY currency pair still took a large step towards reaching the descending channel’s upper boundary. Yesterday’s rally was limited by the 55-day SMA, but the Buck is expected to disregard this resistance today and, thus, easily reclaim the 112.00 major level. Such a bullish development would leave the US Dollar with just one other supply area on its path, formed by the weekly R1 and the upper Bollinger band circa 112.40. Once this zone is overcome, the given pair could reconfirm the channel’s down-trend; however, a breakout from the pattern is unlikely, due to a number of other levels bolstering the trend-line.
Traders’ Sentiment
Today 51% of all open positions are long (previously 53%), whereas 69% of all pending orders are to purchase the Greenback.
