‘The dollar’s already under pressure, so I think any excuse for further pressure is likely to bring the greenback even lower.’ – Kathy Lien, BK Asset Management (based on Business Recorder)
Pair’s Outlook
The USD/JPY currency pair experienced another leg down on Wednesday, causing the descending channel’s support line to be reconfirmed. From a technical perspective another decline is doubtful, as the channel’s support line is now also reinforced by the weekly S3 and the 200d-day SMA. Although the Greenback has a number of resistances on its path today, those are not expected to prevent the US Dollar from recovering today, despite technical indicators suggesting otherwise. However, gains are likely to be capped near 110.00, with the exchange rate beginning its journey towards the channel’s upper border.
Traders’ Sentiment
Bullish market sentiment remains unchanged at 70%, while the portion of purchase orders inched lower from 61 to 56%.
