‘Before resuming its uptrend in the medium term, we think USD/JPY will likely be capped in the near term.’ – Deutsche Bank (based on FXStreet)
Pair’s Outlook
Monday ended with the US Dollar edging lower against the Japanese Yen, paving its way towards the descending channel’s lower border, rather than the upper. Technical studies keep giving bearish signals, implying the Buck is to keep weakening. The weekly S1 is the nearest support, but in case bears continue pushing the pair lower, a drop beyond this area is likely. Nevertheless, a tough support cluster rests circa 109.30, which is also reinforced by the channel’s support line, thus, that is where the Greenback should definitely rebound, given that no other factor sparks more USD-selling.
Traders’ Sentiment
Market sentiment remains bullish, as 70% of traders hold long positions today, compared to 69% yesterday. At the same time, the share of buy orders added two percentage points, having risen up to 56%.
