‘The topside remains capped by the 55 day ma at 114.96. We view the recent low at 111.59 as an interim low. Between these two limits the market is sidelined.’ – Commerzbank (based on FXStreet)
Pair’s Outlook
The FOMC Minutes barely affected the markets yesterday, as no clear clue concerning a future interest rate hike was provided. As a result, the US Dollar closed with a 33-pip loss against the Japanese Yen, retaining its position above 113.00. Technical indicators keep giving mixed signals in the daily timeframe, but the weekly ones now are giving distinctly bullish, implying the USD/JPY pair could soon break out from its consolidation trend. However, in order to fully achieve this goal the Greenback is required to stabilise above the 115.00 major level, meaning the tough resistance, formed by the weekly R1, the monthly PP, the Bollinger band and the 55-day SMA, needs to be overcome.
Traders’ Sentiment
Today 53% of all open positions are long (previously 52%). The share of purchase orders also edged higher, namely from 63 to 65%.
