‘Concerns about geopolitical risks such as North Korea had weighed on the dollar against the yen recently… But the focus is shifting to whether the (strength) of US economic fundamentals is for real. There is more data coming up including the jobs data, so those need to be watched closely.’ – Sumitomo Mitsui Banking Corporation (based on The Business Times)
Pair’s Outlook
Despite having appreciated against the Japanese Yen yesterday, the US Dollar still retreated from its intraday high, as it lacked momentum to pierce the second resistance level. Nevertheless, the USD/JPY pair has the opportunity to pierce this supply level today, with the 112.95 level expected to be the intraday high, as it marks the descending channel’s upper border. The given trend-line is also reinforced by the upper Bollinger band and the monthly R1, while technical indicators are now giving bullish signals in the daily timeframe. The base case scenario, however, is a close around 112.60.
Traders’ Sentiment
Market sentiment is relatively neutral, as 53% of all open positions are short and the remaining 47% are long. At the same time, the number of orders to buy the Buck plunged from 69 to 49%.
