‘Overall, I think the dollar will continue to be under some pressure for a period of time in which the market has to digest what the Fed is saying.’ – Ron Waliczek, INTL FC Stone (based on Business Recorder)
Pair’s Outlook
The US Dollar managed to avoid more weakness, remaining relatively unchanged against the Japanese Yen yesterday. The two immediate support clusters were strong enough to limit the losses on Thursday, but at least one of them is expected to give in in the near future. As a result, the USD/JPY pair is to drop under 113.00, leaving the ascending channel’s support line to trigger a U-turn. Moreover, a rebound from this up-trend would reconfirm the channel pattern and provide sufficient bullish momentum to climb back to 115.00 and eventually breach that psychological resistance.
Traders’ Sentiment
There are 60% of all open positions being long today, compared to 58% on Thursday. At the same time, the portion of orders to acquire the US Dollar added 10% points. The orders now take up 55% of the market.
