‘It’s too early to say that the dollar will keep trending higher and head above the peak it saw in March [115.51 on March 10].’ – Bank of Tokyo-Mitsubishi UFJ (based on Reuters)
Pair’s Outlook
Yesterday the Buck slightly exceeded expectations, as it managed to appreciate beyond the 111.00 level against the Japanese Yen. With the breach of this mark the US Dollar now has the opportunity to continue outperforming the Yen. However, before reaching the descending channel’s upper boundary, there is still one resistance the pair has to pierce on its path, namely the cluster around 112.15, formed by the 55-day SMA, the upper Bollinger band and the monthly pivot point. On the other hand, after Tuesday’s strong rally the Greenback could take a breath and ease on gains, but ultimately no significant changes in either direction are expected today due to absence of solid market movers.
Traders’ Sentiment
For the fifth consecutive time market sentiment worsened, with 62% of all open positons now being long (previously 68%).
