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"In short, the [US] dollar has become expensive. Falls in oil prices mean subdued inflation. All in all, there is no need to raise rates in a hurry."
- Monex Securities (based on CNBC)
Pair's Outlook
Even though the USD/JPY advanced on Thursday, the weekly pivot point limited those gains at 124.40. Nevertheless, the weekly PP is not expected to hold for much longer, as today's fundamentals are likely to push the Greenback higher. Furthermore, technical indicators retain the bullish signals, bolstering the possibility of a rally today. The second resistance lies out of reach, thus, we expect the given pair to advance to around 124.70. However, the Buck risks falling back to around 124.00 in case the data disappoints.
Traders' Sentiment
Market sentiment returned to its Tuesday's level of 71%, down from 74% yesterday. Meanwhile, the portion of purchase orders keeps rising. Now 58% of commands are to acquire the US Dollar.
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