‘The near-term balance of risk appears to favor JPY strength.’ – Scotiabank (based on FXStreet)
Pair’s Outlook
Even though the Greenback outperformed the Yen yesterday, it was still unable to close above the 111.40 mark, but still partially broke through the immediate resistance. Upbeat ADP data triggered the rally, with the NFP now anticipated to strengthen the US Dollar even further. The highest level is expected to be the 112.30 one, where the 100-day SMA rests, assuming other resistances on the path fail to contain the gains. Meanwhile, technical indicators keep giving bearish signals, insisting that the Buck is to edge lower and pierce the 110.75 psychological support area, leaving the 200-day SMA at 110.33 as the next target.
Traders’ Sentiment
Traders’ sentiment remains bearish, with 55% of all open positions now being short. The share of buy orders surged from 30 to 59%.
