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"Since October of last year, dollar-yen trading has become extremely active, and the trend for bullish dollar positions hasn't changed this month."
- Margin Contracts Marketing Group (based on Bloomberg)
Pair's Outlook
A combination of the weekly PP and 23.6% Fibo managed to stop a sell-off. Accordingly, the US Dollar is expected to carry on with the recovery from 116, and the longer-term bullish intentions will be confirmed once the price settles above the monthly PP at 119. However, while the weekly technical indicators are in favour of such a course of events, the daily studies suggest the bears are going to remain in control in the short run.
Traders' Sentiment
The SWFX traders become more and more confident in the ability of the greenback to outperform the Yen, as at the moment 64% of open positions are long and only 36% are short. The share of buy orders increased as well, but from 53 to 63%.
© Dukascopy Bank SA