‘I think the dollar might have trouble above the 115 level today, with Japanese exporters still seeking to sell above it ahead of the end of the Japanese fiscal year this month.’ – Kaneo Ogino, Global-info Co. (based on Reuters)
Pair’s Outlook
Strong PPI was insufficient to cause any substantial volatility on Tuesday, but the USD/JPY pair still remained relatively unchanged for the third consecutive day. Some signs suggest the US Dollar is to strengthen again, such as the technical indicators—they are giving strong bullish signals. A possible rate hike today also suggests the Buck could post gains, however, that implies the ascending channel pattern is likely to be broken to the upside. From the technical perspective a plunge would be more probable, as that would preserve the pattern and an eventual retest of the up-trend circa 113.00, where the USD could receive sufficient momentum to pierce the two-year down-trend.
Traders’ Sentiment
There are 53% of traders holding long positions (previously 59%), while only 52% of all pending orders are to acquire the Greenback.
