‘At the very least the view is that Trump’s economic policies will be delayed over this [latest US political turmoil], and the dollar is being sold.’ – Matsui Securities (based on The Business Times)
Pair’s Outlook
As was anticipated, the USD/JPY currency pair found support near 112.90 yesterday, where the monthly R1 and the 100-day SMA rest. The Buck remains under pressure today as well, which suggests a close is likely to occur below this demand area, paving the way towards a drop to the 112.00 major level. Support around that area is expected to be sufficient to limit the intraday losses, even though technical studies are unable to confirm this scenario. Furthermore, there are no solid market movers present today and with demand for the safe-haven currency higher, no other factor should cause a sudden recovery.
Traders’ Sentiment
Bears keep pushing further, with 66% of all open positions being short now. Meanwhile, the portion of orders to acquire the US Dollar lost three percentage points over the day, having fallen to a total of 49%.
