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- JPMorgan (based on Reuters)
Pair's Outlook
Despite the strength of the nearest support at 101.00/100.65, the currency pair failed to gain enough bullish momentum after testing it in order to overcome the 100-day SMA. Nevertheless, the outlook is bullish, being that USD/JPY is closing in on the apex of the falling wedge pattern, which in turn portends a strong recovery. Before this happens, however, there is a possibility the U.S. Dollar will fall down to 100.19/99.95, 200-day SMA and 61.8% Fibo.
Traders' Sentiment
The current portion of bulls in the market, 72%, is well above the 10-day average value of 58%, as more and more traders consider the decline in USD/JPY as overextended. In the meantime, the gap between the buy (57%) and sell (43%) orders has sharply narrowed.
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