‘As confidence in the dollar weakens with more articles and headlines like those in recent days and weeks, a tipping-point is on the horizon at which investors collectively realize they are at significant risk of being on the wrong side of a potentially large move.’ – A.G. Bisset Associates (based on Bloomberg)
Pair’s Outlook
The USD/JPY currency pair followed a less positive for the Greenback path on Friday, having fallen under the 113.00 threshold after successfully maintaining trade above it for a whole week. The given pair still remains in a consolidation trend, meaning there is sufficient room for a decline towards 111.75 today, where the weekly S1 and the lower Bollinger band form support. On the other hand, a rally is also possible, with the 115.00 level being the main target, but with the 20-day SMA and the weekly PP representing immediate resistance circa 113.40 and another obstacle located around 114.40. Meanwhile, technical indicators are unable to confirm the possibility of either scenario.
Traders’ Sentiment
Today 57% of all open positions are long (previously 55%), whereas 59% of all pending orders are to acquire the US Dollar, up from 57%
