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"Our view remains unchanged that the [Japanese] economy is in a moderate recovery trend."
- Japanese Finance Ministry official (based on CNBC)
Pair's Outlook
Yesterday, USD/JPY edged higher once again after volatile trade between the monthly and weekly R1s. Neither of these levels allowed the US Dollar to pass; hence, the pair ended the day slightly over the upper Bollinger band at 121.43. Today the Greenback is expected to continue its upward momentum, as the US Core Retail Sales are likely to improve. The technical studies are bolstering this outcome, while the pair could encounter immediate resistance around the 2014 high at 121.84.
Traders' Sentiment
For the third day market sentiment remains unchanged, with the percentage of longs standing at 55%. However, the number of orders to acquire the US Dollar slightly dropped, from 67% to 65%.
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