‘We did flip two weeks ago to a modest net short against the franc and the yen. Chances are the dollar, as it has been doing in recent weeks, will drift around in a tight consolidative range.’ – JP Morgan (based on Business Recorder)
Pair’s Outlook
As was anticipated, the US Dollar failed to outperform the Yen yesterday, although upside volatility did stretch out to the 115.00 level. Ultimately, the pair remained relatively unchanged, posting an insignificant loss, but a full-blown failure is not the case. Due to the recent breach of a seven-month down-trend, the USD/JPY pair still has the opportunity to soar towards 118.00 within a month. The only solid obstacle on the pair’s path is the resistance circa 115.10, represented by the 55-day SMA, the monthly R2 and the upper Bollinger band. Today, however, the Buck is expected to struggle at climbing over the weekly R1 and monthly PP resistance area.
Traders’ Sentiment
There are 56% of traders holding long positions today (previously 51%). At the same time, the portion of buy orders declined from 58 to 55%.
