‘U.S. yields are higher and it’s not hard for dollar/yen to attract bids. It is often overlooked but the dollar continues to enjoy underlying support from widening U.S.-Japanese interest rate spreads.’ – State Street Bank and Trust (based on Reuters)
Pair’s Outlook
The US Dollar slid against the Japanese Yen again yesterday, failing to find support at the 111.00 major level, which was expected to trigger a rebound. Nevertheless, the USD/JPY pair has the opportunity to reverse momentum today and being recovering from its nearly 400 pips slump over the last eight days. Despite the possible rally, gains are likely to be very limited, with the 111.60 mark expected to be the ceiling. On the other hand, if US President Trump manages to broker a deal concerning the new healthcare system today, the Greenback will have the potential to even retake the weekly S1 at 111.78.
Traders’ Sentiment
There are 70% of traders holding long positions today, compared to 69% on Thursday. Meanwhile, there are 65% of pending orders to purchase the Buck, up from 49% yesterday.
