‘The dollar stood at 112.765 yen JPY=, slightly higher than Wednesday and at its strongest level since March 20. ‘ – Nichola Saminather (based on Reuters)
Pair’s Outlook
USD/JPY put an end to the strong climb that had been extended towards the upper boundary of the senior channel that has prevailed since mid-December 2016 with a small red candle on Thursday morning. Risks for our base scenario lie below, meaning that today is most likely to be a turning point in the motion as a break above 112.84 is very unlikely. The first level to the downside rests at 112.35 and is an appropriate target for today. In case the cross continues to stick to the upper bound of the channel, we might see some more upside potential in the future.
Traders’ Sentiment
Market sentiment is relatively neutral, as 57% of all open positions are short and the remaining 53% are long. At the same time, the number of orders to buy the Buck slipped from 49% to 48%.
