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"Initial support is seen near 124.00 yen, which also corresponds to the 20-day moving average. Look for better dollar buyers on a move toward 123.20 yen."
- BBH (based on CNBC)
Pair's Outlook
Although the USD/JPY currency pair declined last Friday, losses exceeded expectations. The US Dollar settled at 124.20, rather than the predicted 124.40 level, but with hopes of appreciating again today. However, the weekly pivot point at 124.40 is now blocking the path, even though poor Japanese fundamentals are pushing the Yen lower. Furthermore, news on the US interest rate hike could push the Greenback even higher towards the Bollinger band at 124.77, but a slump to around 124.00 is not out of the question.
Traders' Sentiment
Bullish market sentiment returned to its Thursday's level of 73%. Meanwhile, the number of orders to acquire the Buck added three percentage points. The commands now take up 67% of the market.
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