‘The near-term balance of risk appears to favor JPY strength.’ – Scotiabank (based on FXStreet)
Pair’s Outlook
As was anticipated, the resistance area circa 111.40 caused the US Dollar to weaken against the Japanese Yen on Tuesday, with the weekly S1 at 110.76 limiting the losses. The pair remains contained within a specific trading range, namely between 110.50 and 111.40, leaving little room for another leg down. However, technical indicators suggest that bears are likely to prevail today, although from a broad technical perspective the Buck should strengthen. In either case neither the immediate support nor the resistance are expected to be pierced, leaving the USD/JPY pair to ‘consolidate’ for another day ahead of the US NFP data.
Traders’ Sentiment
There are 57% of traders holding long positions today (previously 58%), whereas 55% of all pending orders are to buy the Greenback.
