© Dukascopy Bank SA
"The Fed's next policy meeting on 17 September suggests there is little point in the BoJ easing on 15 September, just in case the Fed does hike and this does some of the BoJ's work for it (in a further slide in the JPY)."
- NAB (based on FXStreet)
Pair's Outlook
The Greenback sustained serious losses after concerns about the Fed raising interest rates grew. The tough support cluster around 123.60 was pierced, causing the USD/JPY to close trade only at 123.45. The Buck is likely to suffer more weakness today and possibly drop under 123.00 major level; however, a support cluster around 122.90, represented by the weekly S2, monthly PP and the 100-day SMA, should hold the pair from falling deeper. Meanwhile, technical studies retain their mixed signals, while the weekly ones are now showing bullish signs.
Traders' Sentiment
Bullish traders' sentiment remains unchanged at 75%, whereas the share of purchase orders increased from 59 to 67%.
© Dukascopy Bank SA