‘It is too early to expect a sustained rebound and USD is more likely to trade sideways between 108.20 and 109.80 for now even though the immediate bias is for a probe higher towards the top of the expected consolidation range at 109.80.’ – UOB Group (based on FXStreet)
Pair’s Outlook
The Buck strengthened on Thursday, adding just under 50 pips against the Yen, thus, prolonging the descending channel pattern. The immediate resistance was also pierced, which now turned into supports, bolstering the channel’s lower border. According to daily technical indicators, the USD/JPY pair risks experiencing another leg down and could retest the channel’s support line. On the other hand, sufficient demand around the 109.00 mark could help the Greenback recover further, but with the 110.00 expected to be the intraday ceiling.
Traders’ Sentiment
Bullish traders’ sentiment returned to its Wednesday’s level of 72%, compared to 74% on Thursday. The portion of orders to acquire the Buck added 8%points. The orders now take up 65% of the market.
