‘There’s a lot of positive news now priced into the market, and I think we’ll probably see some profit-taking, so I think we’ll probably see the dollar weaken from here.’ – Douglas Borthwick, Chapadelaine Foreign Exchange (based on Reuters)
Pair’s Outlook
With the return of the risk-off sentiment, the US Dollar weakened against the Japanese Yen on Friday, managing to retain its position above the 114.00 handle. However, risk-aversion remains in the markets, thus, another leg down is anticipated. The nearest support rests circa 113.30, formed by the 20-day SMA, the weekly and the monthly PPs, which is to prevent the USD/JPY pair from edging lower today. Meanwhile, the pair appears to have formed a moderate ascending channel pattern, the upper border of which, along with the monthly R1, the 55-day SMA and the Bollinger band, represent immediate resistance circa 114.50.
Traders’ Sentiment
There are 59% of traders holding long positions today (previously 60%), whereas the share of buy orders remains unchanged at 56%.
